Hawaii Man Faces SEC Charges for Crypto Pump-and-Dump Scheme
The Securities and Exchange Commission (SEC) has charged a man from Hawaii for allegedly orchestrating a pump-and-dump scheme involving fake press releases and redemption notices to inflate the price of unsecured loans. Jeremy Koski spread false information about converting the loans into a cryptocurrency and collaborated with a legitimate hedge fund founder, Jim Simons, in his fabricated statements. Koski's scheme aimed to protect his investment in JCPenney shares, which were trading at a low price due to the company's bankruptcy. The SEC has brought a case against Koski for defrauding investors who purchased shares at inflated prices.