SEC Takes Emergency Action Against Miami-Based Cryptocurrency Investment
On March 6th, 2023, the Securities and Exchange Commission (SEC) confirmed that an emergency asset freeze is in place in the case involving BKcoin Management, LLC and its principal owner and operator Kevin Kang. Bkcoin is a Miami-based cryptocurrency investment advisory firm. The company and Mr. Kang are both currently implicated in an alleged $100 million securities fraud case. In this article, our Miami investment fraud attorney highlights the key things that investors should know about this case.
The Allegations: $100 Million Cryptocurrency Securities Fraud Scheme
The SEC filed a complaint in the United States District Court for the Southern District of Florida. Within this legal complaint, the federal regulator alleges that Min Woo Kang (Kevin Kang) used BKcoin Management, LLC to perpetuate a $100 million investment fraud scheme between the fall of 2018 and the fall of 2022. According to the SEC, Bkcoin and Mr. Kang made representations to investors that their capital would be used to trade cryptocurrencies in order to generate a positive return on investment (ROI).
However, the SEC contends that Mr. Kang commingled funds and shifted around investor money in a “Ponzi-like” scheme. In total, 55 investors were reportedly affected by the fraud scheme. The SEC alleges that at least $3.6 million in investor funds were used to make improper payments to investors. An additional $371,000 in investor funds were siphoned to support Mr. Kang’s lavish lifestyle. The SEC obtained an emergency asset freeze to protect investor funds.
SEC Seeking a Wide Range of Remedies Against Bkcoin and Kevin Kang
The SEC is pursuing a wide array of legal and financial remedies against Miami-based Bkcoin and investment adviser Kevin Kang. Among other things, the complaint requests an order for disgorgement of ill-received gains, the payment of prejudgment interest, and civil financial penalties The SEC is seeking penalties against both the company and its owner. Two other investment funds were named as relief defendants and the SEC is seeking repayment of around $12 million on the grounds that ill-received investor money was transferred to these funds.
Cryptocurrencies are Potentially Risky Alternative Investments
Cryptocurrencies have become a popular alternative investment in recent years, but they come with significant risks. The decentralized and unregulated nature of cryptocurrencies makes them vulnerable to market volatility, fraud, and hacking attacks. Investors should always approach these opportunities with caution. As with other types of investments, decisions should only be made after careful research and consideration of the risks involved. An investor defrauded in a cryptocurrency related investment may be entitled to financial compensation for his or her damages.
Consult With Our Miami, FL Securities Fraud Lawyer Today
At Carlson & Associates, P.A., we are a law firm devoted to protecting the rights, interests, and financial security of investors. If you suffered financial losses in any type of securities fraud scheme, we are prepared to help you find the best path forward. You may be eligible to recover compensation for your damages. Contact our Miami office today for a confidential case review.
Source:
sec.gov/litigation/litreleases/2023/lr25657.htm
