The SEC Charges Hawaii Resident for Market Manipulation and Fraud
The United States Securities and Exchange Commission (SEC) has filed charges against a resident of Hawaii for engaging in market manipulation, fraud, and false promises of transforming an equity fund into crypto. Jeremy Koski allegedly fudged documents on the internet to falsely convey that a public security fund would turn into digital currency.
Koshki’s False Investment Promises
- The SEC has accused Jeremy Koski of security fraud by attempting to manipulate equity securities on the Nasdaq stock exchange.
- Koski declared that the publicly traded security fund, COTRP, would convert to a cryptocurrency, making it the first of its kind.
- He created and shared fake press releases to spread false information about the fund’s cryptocurrency conversion.
- Koski falsely claimed that the conversion would enable the fund to reach its face value of $25.
SEC Enforcement Against Crypto Fraud In Recent Times
- The SEC recently charged a former US prison officer, John A. DeSalvo, for running a crypto scam.
- DeSalvo allegedly raised over $600,000 by selling an unregistered crypto token called Blazar Token.
- He falsely represented the token as registered and promised high rates of returns.
- The SEC accused DeSalvo of misusing investor money, including using some funds to renovate his house.
- The SEC has launched the “Never Stop Learning” campaign to educate older individuals about crypto scam risks.
Crypto Exploits and Losses in Q2 2023
In Q2 2023, crypto exploits increased by 65.3% compared to the same period last year, resulting in total losses of $265,481,519. The cumulative losses in the ecosystem for both quarters in 2023 have exceeded $702 million.
Your Hot Take
The SEC’s charges against individuals involved in market manipulation, fraud, and false promises highlight the ongoing need for vigilance and education within the crypto space. Investors must remain cautious and conduct thorough research before engaging in any investment opportunities. The SEC’s efforts to protect investors and raise awareness about scams are crucial for a safer and more transparent crypto market.
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