In recent years The Securities and Exchange Commission has cracked down on several high-profile crypto firms. In a recent effort, SEC has launches emergency actions against BKCoin, a Miami-based investment advisor, for its involvement in a $100 million fraudulent investment scheme.
What are the Allegations against BKCoin?
As per the SEC, BKCoin and its co-founder, Kevin Kang, cheated investors by promising exciting returns on their investments. The company reportedly claimed that its program could offer huge returns, despite having no proof to back up the claim.
The SEC also accused BKCoin and Kevin of using the funds in buying luxurious items and compensating previous investors. The company reportedly gave misleading statements and fake information to fool the investors, resulting in the loss of hundreds of dollars.
What Emergency Measures have been taken?
As a result of the alleged fraudulent scheme, the SEC has taken emergency actions against BKCoin and co-founder Kevin as a result the commission had frozen the adviser’s assets and also facilitated other emergency relief to the victims. The SEC has also notified the investors, asking them to be careful when engaging in cryptocurrencies or other high-risk investments.
The commission warned investors to do their due diligence, ask questions, and be cautious of promises of high returns that seem too good to be true. The SEC’s strict measures against BKCoin send a reminder that fake investment schemes can exist in any field. Hence, it is significant for investors to avoid investing in schemes that seem to be vulnerable.