The U.S. 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 False Crypto Promises
The SEC has recently accused Koski of security fraud by attempting to manipulate equity investment funds 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”)
The SEC has accused him of committing fraud by claiming exposure to the crypto market through various internet usernames.
“Koski also allegedly fabricated and disseminated phony COTRP press releases purporting to announce that “COTRP will be the first publicly traded security fund to convert to a cryptocurrency,” the statement notes.
He falsely stated the “cryptocurrency conversion” would enable the fund to reach its face value of $25.
SEC Enforcement Against Crypto Fraud In Recent Times
This comes after the SEC pressed charges against a former US prison officer for 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 targeted the law enforcement community with the scheme. The SEC accused him of misusing investor money and sending the funds to his crypto wallet. He even reportedly spent some of the funds for renovation work at his house.
In the second quarter of 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. In the current year, the ecosystem has experienced a cumulative loss surpassing $702 million.
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