SEC Charges Hawaiian Resident for Bizarre Crypto Scam

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 a 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 recently accused Koski of security fraud by attempting to manipulate equity securities on the Nasdaq stock exchange.

The Securities and Exchange Commission charged Jeremy Koski, a resident of Hawaii, with securities fraud in connection with his manipulation of the trading market for structured equity securities backed by certain J.C. Penney Company, Inc. debentures (“JCP Debentures”) which trade over the counter under the symbol COTRP.

The SEC allege that Koshki claimed COTRP will have exposure to the crypto market.

The statement points out that Koshki, using a fake identity and different usernames, created and shared fake COTRP press releases. Allegedly, he did this to declare that “COTRP will be the first publicly traded security fund to convert to a cryptocurrency.”

Koshki allegedly falsely explained that the “cryptocurrency conversion” would enable the fund to reach its face value of $25.

To learn more about crypto scams, read BeInCrypto’s guide: 15 Most Common Crypto Scams To Look Out For

SEC Enforcement Against Crypto Fraud In Recent Times

The US SEC recently pressed charges against a former US prison officer for running a crypto scam. John A. DeSalvo allegedly raised over $600,000 selling an unregistered crypto token called Blazar Token to other law personnel.

The SEC has alleged that DeSalvo falsely represented the token as registered and promised high rates of returns.

He allegedly focused on the law enforcement community in his plan. The SEC accused him of misusing investor money and transferring it to his crypto wallet. He also apparently used some of the funds to renovate his house.

In Q2 2023, crypto exploits reportedly increased by 65.3% compared to the same period last year. These exploits led to total losses amounting to $265,481,519. Across both quarters in 2023, the ecosystem has experienced a cumulative loss surpassing $702 million.

The post SEC Charges Hawaiian Resident for Bizarre Crypto Scam appeared first on BeInCrypto.

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