Magistrate Approves $121K Payment for Receiver in BK Coin Management Crypto Fraud Case

News | July 5, 2024 By:

On Monday, June 24, 2024, Jonathan Goodman, a magistrate judge of the United States District Court for the Southern District of Florida, issued a report and recommendations regarding a receiver’s application for payment in an ongoing cryptocurrency fraud case.

The case involved the Securities and Exchange Commission’s suit against BK Coin Management LLC and its founder, alleging violations of federal securities laws through an unregistered offering of cryptocurrency investments. The court had appointed a receiver to take control of the defendants’ assets pending the resolution of the case.

In his recent filing, the receiver requested approval for over $121,000 in fees and expenses incurred by himself and retained professionals from January to March 2024. The application covered work by the receiver’s law firm, Akerman LLP, which located additional financial accounts and cryptocurrency assets belonging to the defendants. It also covered efforts by the accounting firm YIP Associates to analyze records, trace funds through various exchanges, and handle tax compliance.

A forensic cryptocurrency consulting firm, Coherent Economics, assisted with tracing digital currencies and accounting to support potential litigation. This included reviewing trading activity from 18 exchanges and creating a database to track transfers of assets across platforms. All professionals reportedly provided their services at discounted hourly rates.

In his report, Magistrate Judge Goodman scrutinized the detail provided on hours billed and work performed. He found the claimed fees and costs to be reasonable based on his experience. No objections were raised to the application by the SEC or any other parties.

Please contact BlockTribune for access to a copy of this filing.