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 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 alleges that Koshki claimed COTRP will have exposure to the crypto market in a unique way.
Allegedly, he declared that “COTRP will be the first publicly traded security fund to convert to a cryptocurrency.” Through a fake identity and different usernames, Koshki created and shared fake COTRP press releases to spread the false information.
Additionally, 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 also falsely represented the token as registered and promised high rates of returns.
He allegedly focused on targeting the law enforcement community. The SEC accused him of misusing investor money, alleging he used some of the funds to renovate his house.
In Q2 2023, crypto exploits reportedly increased by 65.3% compared to last year’s period. Altogether, these exploits led to total losses amounting to $265,481,519.
Across both quarters in 2023, the ecosystem also experienced a cumulative loss surpassing $702 million.
On June 12, the SEC introduced the “Never Stop Learning” campaign to alert and educate the older generation about crypto scam risks, offering resource tools for protecting their money from fraud and financial abuse.
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