The US Securities and Exchange Commission (SEC) has taken action against BKCoin and its former chief investment officer, Timothy T. Kang, following allegations of misappropriation of funds.
Kang was fired from BKCoin in October 2021, five months after the company’s core legal entity, BKCoin Management LLC, filed a lawsuit in a Florida circuit court accusing him of “improperly diverted” $12 million in cash and other assets out of the firm’s multi-strategy funds.
According to the SEC, Kang stands accused of diverting a minimum of $371,000 in customer funds to pay for personal expenses, such as his New York apartment rent, tickets to sporting events, and vacations.
According to the regulator, Kang attempted to conceal his actions by providing falsified documents to investors with “inflated bank account balances” and falsely stating that BKCoin had been audited by a “top four auditor.”
In response, the SEC is seeking permanent injunctions against both BKCoin and Kang, as well as disgorgement, prejudgement interest, and a civil penalty.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
- Source: https://www.cryptocompare.com/email-updates/daily/2023/mar/07/
- :is
- 000
- 2021
- 2023
- a
- Account
- accused
- Action
- actions
- After
- against
- Allegations
- analysis
- and
- Apartment
- AS
- Assets
- attempted
- audited
- balances
- Bank
- bank account
- by
- Cash
- chief
- commission
- company
- Core
- Court
- CryptoCompare
- customer
- documents
- entity
- events
- exchange
- expenses
- Firm
- florida
- following
- For
- Former
- from
- funds
- HTTPS
- in
- interest
- investment
- Investors
- ITS
- lawsuit
- Legal
- LLC
- management
- Market
- Market Analysis
- million
- minimum
- months
- Multi-Strategy
- New
- New York
- october
- of
- Officer
- Other
- Pay
- permanent
- personal
- plato
- Plato Data Intelligence
- PlatoData
- providing
- regulator
- Rent
- report
- response
- s
- SEC
- Securities
- Securities and Exchange Commission
- seeking
- stands
- such
- that
- The
- tickets
- to
- top
- us
- WELL
- with
- zephyrnet