United States of America: Announced SEC lawsuit against BKCoin for engaging in a alleged "crypto asset fraud scheme"

On 6 March 2023, the US Securities and Exchange Commission (SEC) announced that it had filed an emergency action obtaining an asset freeze, appointment of a receiver, and other emergency relief against BKCoin Management, a Miami-based investment adviser, and one of its principals, Kevin Kang, in connection with alleged crypto asset fraud scheme. The SEC has filed a complaint against BKCoin and Kang in the United States District Court for the Southern District of Florida for violations of the antifraud provisions of the federal securities laws. In particular, SEC claims that BKCoin and Kang misappropriated around USD 100 million provided by investors to invest in crypto assets and instead used the money to make Ponzi-like payments and for personal use.