The U.S. Securities and Exchange Commission (SEC) recently slapped a Hawaiian resident, Jeremy Koski, with serious allegations. The charges revolve around fraudulent practices, market manipulation, and misleading claims regarding a switch from equity funds to cryptocurrency.
Digital Deception: False Promises and Manipulation
Jeremy Koski stands accused of doctoring online documents. His aim? Misleading investors into believing a public security fund would transition into a digital asset. The false portrayal revolved around a specific public security fund linked to the J.C. Penney Company.
In a formal statement, the SEC expounded, “Jeremy Koski, hailing from Hawaii, has been charged with security fraud. It pertains to his calculated attempts to distort the trading dynamics of structured equity securities. Backed by J.C. Penney Company’s debentures, these securities trade as COTRP over-the-counter.”
Furthermore, the SEC states that Koski dropped hints about COTRP’s impending exposure to the crypto realm. But there’s a catch. According to the allegations, Koski boasted, “COTRP will pioneer as the first publicly traded security fund to morph into a cryptocurrency.”
With a faux identity and various usernames, Koski is said to have crafted and disseminated misleading COTRP press releases. These releases painted a rosy picture, suggesting that this so-called “cryptocurrency conversion” would elevate the fund’s face value to $25.
Another Scam Surfaces: Former Prison Officer Under the Scanner
However, this isn’t the only case of manipulation. In a separate case, the SEC has taken a former U.S. prison officer, John A. DeSalvo, to task. He’s in hot water for allegedly fleecing more than $600,000. His method? Selling an unlicensed crypto token named ‘Blazar Token’ primarily to his peers in law enforcement.
The regulator’s scrutiny reveals that DeSalvo misrepresented the Blazar Token. He projected it as a registered entity, promising sky-high returns. The alleged scam wasn’t random. DeSalvo’s primary audience was the law enforcement community. The cherry on the cake? The SEC claims DeSalvo channeled some of these ill-gotten gains into home renovations.
These instances shed light on the imperative need for investor vigilance. Discerning genuine opportunities and potential scams is crucial, especially in the rapidly evolving crypto sphere. Investors are urged to exercise due diligence and remain wary of too-good-to-be-true promises and manipulation.
Remember, a well-informed investor is the best defense against potential financial pitfalls in the ever-fluctuating world of investments.
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