Kyung Soo Kim Fined by FINRA for Unreported Crypto Mining

Wilfred Michael 

Wilfred Michael

News reporter

13 June 2019,
11:37
Kyung Soo Kim Fined by FINRA for Unreported Crypto Mining

The U.S Financial Industry Regulatory Authority (FINRA) has according to a letter of settlement released earlier this week, fined and suspended, Kyung Soo Kim, an investment advisor for U.S based firm, Merrill Lynch.

Kim as per the letter registered with the self-regulatory organization as a securities representative for Merrill Lynch, and have stayed with the company since joining in 2014.

However, at the peak of the Bitcoin boom in late 2017, Kim allegedly set up another firm, S. Corporation, to carry out cryptocurrency mining activities.

Further, he sent funds to another firm to fund the production of computer hardware and software for the crypto mining operations.

It was not setting up a new corporation that FINRA counted as an offense by Kim, but the fact that he failed to report the transferred funds to his employers, Merrill Lynch.

Kim's funding of the operations according to the notice violated two sections of the law set by FINRA for registered business persons.

Specifically, rules number 3270 and 2010 under FINRA's regulations require that registered members must declare in writing any business activities that differ from that for which it registered with the body.

Also, FINRA deemed that Kyung Soo Kim did not “observe high standards of commercial honor and just and equitable principles of trade.'

As punishment, FINRA fined Kyung Soo Kim of $5000 and also handed a one-month suspension from associating with FINRA-registered agency.

In a similar report, we confirmed that Australian authorities were set to imprison a government worker who used the computing network at his workplace to mine cryptocurrencies for personal benefits.

In Brazil, authorities also fined a man who was operating a secret crypto mining farm but paid the same electricity fees as the rest of the neighborhood.

 

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