Allegations of Misappropriation and False Documents
The SEC alleges that BKCoin Management raised $100 million from at least 55 investors to invest in cryptocurrency but instead used the funds for luxury items and Ponzi-like payments. Principal Kevin Kang is accused of misappropriating at least $371,000 of investor money for personal use and falsifying documents.
SEC Seeks Permanent Injunctions, Disgorgement, and Civil Penalty
The SEC has already frozen assets and taken other emergency measures against the company and its principal. The Commission is seeking permanent injunctions, disgorgement, prejudgment interest, and a civil penalty from both defendants, as well as an officer and director bar and conduct-based injunction against Kang.
SEC Investigation into Robinhood's Crypto Business
In recent years, the SEC has taken a tough stance against the crypto industry, targeting token sales and ICOs as unregistered securities sales. Under Chair Gary Gensler, the crackdown has intensified, with the SEC believing that all coins and tokens, except for Bitcoin, are unregistered securities. High-profile companies such as Genesis, Gemini, and Kraken have already been targeted by the SEC, with the Commission imposing charges and fines for violating securities laws.