U.S. Securities and Exchange Commission SECfiled an urgent lawsuit to confiscate a crypto startup it determined to be a scam.
The official agency, which made a statement on March 6, is a Miami-based crypto investment consultancy company. BKCoin Management LLC and claims that founder Kevin Kang is engaged in fraudulent activity. According to the SEC, BKCoin has a total of 55 investors. 100 million dollars raised funds.
“BKCoin and Kevin Kang run a ponzi network with the bulk of the resource rather than investing with funds.”
As a result of its investigation, the Securities and Exchange Commission found that BKCoin violated the securities law.
According to the statement, the investment firm promised positive returns to its clients through five individually managed private funds. However, according to the findings, BKCoin combines all investments in a single pool and pays with the ponzi system.
BKCoin has paid out $3.6 million so far. According to the report, approximately 350 thousand dollars of the total investment was personally embezzled by Kang. The company also offers its customers “from four different independent auditors” He also lied that he was approved.
In its report, the SEC recently highlighted the allegations that approximately $12 million was transferred from Bison Bison Digital LLC to BKCoin.
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