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SEC Charges Hawaiian Resident for Bizarre Crypto Scam

2 mins
Updated by Kyle Baird
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In Brief

  • The SEC has charged Jeremy Koski over allegations of market manipulation and false crypto conversion promises.
  • Koski is accused of fabricating press releases, stating that a publicly traded security fund would convert into a crypto.
  • The SEC alleges Koski manipulated equity securities on the Nasdaq exchange by making false promises.
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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.

Top crypto losses in Q2 2023. Source: ImmuneFi
Top crypto losses in Q2 2023. Source: ImmuneFi

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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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.
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