Many crypto investors have lost their funds in scams such as BKCoin. For instance, Bitcoinist reported that the DeFi sector recorded a whopping $678 million to hackers in the second quarter of 2022, confirming the risks inherent in the industry.
Surprisingly, these scams sometimes come in an official package, deceiving investors into thinking they’re legit. As alleged by the US Securities and Exchange Commission, a recent scam package is an offer from BKCoin and its co-founder. The commission has filed an emergency action against the financial advisory firm for defrauding investors.
BKCoin And Co-Founder Stole $100 Million, SEC Says
The SEC filed a complaint alleging that the defendants have stolen $100 million through a fraudulent crypto scam. The SEC shared a press release asserting that the defendants defrauded 55 investors between October 2018 and September 2022.
The company and its co-founder Kevin Kang had told the investors that they would use their funds to trade crypto assets, thereby earning them huge returns on their investments. The defendants even lied to the investors that they had received an audit opinion from a top-four auditor.
But instead of trading crypto with investors’ funds, the defendants used $3.6 million to pay out to others in the…
