{"investigation":{"slug":"krish-kumar","entity_name":"Krish Kumar","trust_score":3,"severity_base":null,"score_modifier":0,"confidence":0.92,"status":"draft","content_type":"investigation","summary":"Krish Kumar is a Tulsa, Oklahoma college student who, according to a settled SEC civil complaint filed March 26, 2026, raised approximately $7.8 million from roughly 34 investors through two funds he operated — Future Fractal Investments LLC and Arcane Resonance Fund, LLC — and allegedly misappropriated nearly $7 million of those assets by transferring them to personal accounts he controlled. Without admitting or denying the allegations, Kumar consented to permanent and conduct-based injunctions; monetary remedies including disgorgement, pre-judgment interest, and civil penalties remain pending court determination. No parallel criminal charges have been publicly reported as of September 2026.","sections":[{"content":"Krish Kumar is a resident of Tulsa, Oklahoma who, according to the SEC complaint, was approximately 19 years old and a college freshman when he established and began operating Future Fractal Investments LLC in or around January 2024. He later established a second fund, Arcane Resonance Fund, LLC, which began accepting investor capital in approximately May 2024. Kumar served as the sole manager of both funds and acted in an investment adviser capacity for both. The SEC complaint (Case No. 26-cv-00184, N.D. Okla.) was filed on March 26, 2026.","heading":"Background and Fund Formation","sources":[{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26507","name":"SEC Litigation Release LR-26507 — Krish Kumar","type":"regulatory","credibility":1},{"url":"https://www.investmentnews.com/regulation-legal-compliance/sec-accuses-college-student-of-siphoning-nearly-7-million-from-two-investment-funds/265888","name":"InvestmentNews — SEC accuses college student of siphoning nearly $7 million from two investment funds","type":"news_article","credibility":2}],"severity":"high"},{"content":"According to the SEC complaint, Kumar pitched Future Fractal Investments to prospective investors as offering a proprietary algorithmic options trading strategy he claimed to have created and back-tested. He represented that the fund would trade exclusively in two index-based ETFs tracking the S&P 500 and Nasdaq-100, that no single trade would exceed 5% of assets under management, and that losses would be capped at approximately 25%. He also claimed the fund achieved a 15.7% return during its first week of trading; the SEC alleged that trading records show the fund actually incurred losses of approximately $1,200 that week.\n\nThe SEC alleged Kumar raised approximately $6 million from roughly 24 investors in Future Fractal between approximately January 2024 and early 2025. According to the complaint, between late February and early March 2024 Kumar transferred more than $5.6 million of Future Fractal assets into personal and nominee accounts he controlled. The complaint alleged that Kumar then used those transferred funds to purchase approximately 33,009 option contracts in a single publicly traded crypto-asset technology company focused on Bitcoin mining (identified in reporting as 'Issuer A'), representing approximately 80% of market trading volume in those contracts. Over approximately four trading days in mid-March 2024, the SEC alleged that roughly 98% of the transferred assets were lost.\n\nAfter the near-total loss, the SEC alleged that Kumar provided investors with fabricated trading records and falsely represented that the fund had earned 30–40% returns on its way to telling Arcane investors about prior performance.","heading":"Future Fractal Investments LLC — Alleged Fraud","sources":[{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26507","name":"SEC Litigation Release LR-26507 — Krish Kumar","type":"regulatory","credibility":1},{"url":"https://www.sec.gov/files/litigation/complaints/2026/comp26507.pdf","name":"SEC Complaint — comp26507.pdf","type":"court_filing","credibility":1},{"url":"https://fxnewsgroup.com/forex-news/regulatory/sec-goes-after-manager-of-future-fractal-investments-and-arcane-resonance-fund/","name":"FX News Group — SEC goes after manager of Future Fractal Investments and Arcane Resonance Fund","type":"news_article","credibility":2},{"url":"https://www.mofo.com/resources/insights/260421-top-5-sec-enforcement-developments-for-march-2026","name":"Morrison Foerster — Top 5 SEC Enforcement Developments for March 2026","type":"research","credibility":2}],"severity":"critical"},{"content":"According to the SEC complaint, after the near-total loss in Future Fractal, Kumar established Arcane Resonance Fund, LLC and raised approximately $1.8 million from 10 investors between approximately May 2024 and February 2025. Arcane was purportedly focused on trading crypto assets and various securities including options, using a mathematical arbitrage strategy Kumar claimed to have developed.\n\nThe SEC alleged Kumar made several materially false representations to Arcane investors: that the worst-case expected return was 1.2x (a 20% gain); that 99% of assets would be used for investment purposes; that maximum risk loss was 10–20% with 80% held in cash; and that his prior fund (Future Fractal) had earned 30–40% returns. All of these representations were, according to the SEC, false.\n\nThe SEC alleged that Kumar misused Arcane investor funds in multiple ways: approximately $300,000 was paid to a Future Fractal investor to compensate for losses in that earlier fund; approximately $20,000 was used to satisfy a personal debt unrelated to either fund; and approximately $1.3 million was transferred to Kumar's personal accounts. On or around March 11, 2025, Kumar informed Arcane investors that the fund was down approximately 80% of its value.","heading":"Arcane Resonance Fund, LLC — Alleged Fraud","sources":[{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26507","name":"SEC Litigation Release LR-26507 — Krish Kumar","type":"regulatory","credibility":1},{"url":"https://www.sec.gov/files/litigation/complaints/2026/comp26507.pdf","name":"SEC Complaint — comp26507.pdf","type":"court_filing","credibility":1},{"url":"https://www.investmentnews.com/regulation-legal-compliance/sec-accuses-college-student-of-siphoning-nearly-7-investment-funds/265888","name":"InvestmentNews — SEC accuses college student of siphoning nearly $7 million from two investment funds","type":"news_article","credibility":2},{"url":"https://www.fa-mag.com/news/sec-settles-with-okla--college-student-who-allegedly-duped-investors-out-of--7-8m-86446.html","name":"FA Magazine — College Freshman Duped Investors Out Of Nearly $7M, SEC Says","type":"news_article","credibility":2}],"severity":"critical"},{"content":"On March 26, 2026, the SEC filed a civil complaint against Krish Kumar in the U.S. District Court for the Northern District of Oklahoma (Case No. 26-cv-00184). The complaint charged Kumar with violating: Section 17(a) of the Securities Act of 1933; Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder.\n\nThe SEC reported that Kumar settled the charges without admitting or denying the allegations. He consented to the entry of a judgment — subject to court approval — providing for permanent injunctions against future violations of the charged provisions and conduct-based injunctions. The SEC is also seeking a five-year bar from participating in securities offerings and from acting as or being associated with any investment adviser. Monetary remedies, including disgorgement of ill-gotten gains, pre-judgment interest, and civil penalties, remain pending and are to be determined by the court upon a future SEC motion.\n\nAs of March 2026, Kumar had repaid approximately $681,000 to investors out of the approximately $6.9 million alleged to have been misappropriated. No parallel criminal charges from the Department of Justice had been publicly announced as of September 2026.","heading":"SEC Civil Enforcement Action and Settlement","sources":[{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26507","name":"SEC Litigation Release LR-26507 — Krish Kumar","type":"regulatory","credibility":1},{"url":"https://www.sec.gov/files/litigation/complaints/2026/comp26507.pdf","name":"SEC Complaint — comp26507.pdf","type":"court_filing","credibility":1},{"url":"https://news.bloombergtax.com/banking-law/college-student-misappropriated-nearly-7-million-sec-says","name":"Bloomberg Law — College Student Misappropriated Nearly $7 Million, SEC Says","type":"news_article","credibility":1},{"url":"https://www.mofo.com/resources/insights/260421-top-5-sec-enforcement-developments-for-march-2026","name":"Morrison Foerster — Top 5 SEC Enforcement Developments for March 2026","type":"research","credibility":2}],"severity":"critical"},{"content":"The SEC complaint alleged that Kumar provided investors with falsified documentation to conceal losses and misappropriation. Specifically, the complaint alleged that Kumar photoshopped brokerage account documents and provided fabricated trading records to investors after the near-total loss of Future Fractal assets in mid-March 2024. These allegedly falsified documents overstated fund performance and concealed the actual disposition of investor assets. The production of fabricated records is described in the complaint as a distinct category of misconduct in addition to the underlying misappropriation.","heading":"Alleged Use of Fabricated Documents","sources":[{"url":"https://www.sec.gov/files/litigation/complaints/2026/comp26507.pdf","name":"SEC Complaint — comp26507.pdf","type":"court_filing","credibility":1},{"url":"https://www.investmentnews.com/regulation-legal-compliance/sec-accuses-college-student-of-siphoning-nearly-7-million-from-two-investment-funds/265888","name":"InvestmentNews — SEC accuses college student of siphoning nearly $7 million from two investment funds","type":"news_article","credibility":2},{"url":"https://www.law360.com/articles/2458407/student-fleeced-pals-families-with-7-8m-fraud-sec-says","name":"Law360 — Student Fleeced Pals' Families With $7.8M Fraud, SEC Says","type":"news_article","credibility":2}],"severity":"critical"},{"content":"According to reporting by Law360 and other outlets, a significant portion of the investors in both funds were friends and family connections of Kumar, characterizing the matter as a fraud that targeted people in Kumar's personal social network. Future Fractal had approximately 24 investors; Arcane Resonance had 10 investors, for a combined total of approximately 34 investors across both funds. The total amount raised across both funds was approximately $7.8 million. These are civil SEC allegations; no court has yet adjudicated the merits of the claims or entered final monetary judgment.","heading":"Investor Profile and Social Context","sources":[{"url":"https://www.law360.com/articles/2458407/student-fleeced-pals-families-with-7-8m-fraud-sec-says","name":"Law360 — Student Fleeced Pals' Families With $7.8M Fraud, SEC Says","type":"news_article","credibility":2},{"url":"https://www.fa-mag.com/news/sec-settles-with-okla--college-student-who-allegedly-duped-investors-out-of--7-8m-86446.html","name":"FA Magazine — College Freshman Duped Investors Out Of Nearly $7M, SEC Says","type":"news_article","credibility":2}],"severity":"high"},{"content":"As of September 2026, the consent judgment entered in Case No. 26-cv-00184 (N.D. Okla.) remains subject to court approval. Monetary remedies — disgorgement, pre-judgment interest, and civil penalties — have not yet been determined by the court and are to be set upon a future SEC motion. The SEC has also sought a five-year bar on Kumar from participating in securities offerings and from being associated with any investment adviser, which likewise remains pending final court entry. No court ruling on the merits of the allegations has been made; the settlement was entered without an admission or denial of the SEC's allegations. The approximately $681,000 already repaid to investors represents roughly 10% of the approximately $6.9 million the SEC alleges was misappropriated. No publicly announced DOJ criminal charges existed as of the investigation date.","heading":"Case Status and Outstanding Proceedings","sources":[{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26507","name":"SEC Litigation Release LR-26507 — Krish Kumar","type":"regulatory","credibility":1},{"url":"https://www.mofo.com/resources/insights/260421-top-5-sec-enforcement-developments-for-march-2026","name":"Morrison Foerster — Top 5 SEC Enforcement Developments for March 2026","type":"research","credibility":2}],"severity":"high"}],"timeline":[{"date":"2024-01-30","event":"Future Fractal Investments LLC begins active trading; Kumar begins raising capital from investors, according to SEC complaint.","source":"SEC Complaint comp26507.pdf","source_url":"https://www.sec.gov/files/litigation/complaints/2026/comp26507.pdf"},{"date":"2024-02-01","event":"Kumar allegedly claims 15.7% first-week return to investors; SEC alleged the fund actually lost approximately $1,200 that week.","source":"SEC Litigation Release LR-26507","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26507"},{"date":"2024-02-01","event":"Future Fractal assets alleged to have incurred approximately $470,000 in losses by end of February 2024.","source":"FX News Group","source_url":"https://fxnewsgroup.com/forex-news/regulatory/sec-goes-after-manager-of-future-fractal-investments-and-arcane-resonance-fund/"},{"date":"2024-03-01","event":"Kumar allegedly transfers more than $5.6 million of Future Fractal investor assets to personal and nominee accounts he controlled, according to the SEC complaint.","source":"SEC Litigation Release LR-26507","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26507"},{"date":"2024-03-15","event":"Over approximately four trading days in mid-March 2024, Kumar allegedly purchases 33,009 option contracts in a Bitcoin mining company using transferred Future Fractal assets, representing approximately 80% of market volume; approximately 98% of those transferred assets are lost.","source":"InvestmentNews","source_url":"https://www.investmentnews.com/regulation-legal-compliance/sec-accuses-college-student-of-siphoning-nearly-7-million-from-two-investment-funds/265888"},{"date":"2024-05-01","event":"Kumar begins raising capital for the second fund, Arcane Resonance Fund, LLC, according to the SEC complaint. He allegedly misrepresents Future Fractal's prior returns as 30–40% to Arcane investors.","source":"SEC Litigation Release LR-26507","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26507"},{"date":"2025-02-28","event":"Arcane Resonance Fund capital-raising period ends; approximately $1.8 million raised from 10 investors, according to the SEC complaint.","source":"FX News Group","source_url":"https://fxnewsgroup.com/forex-news/regulatory/sec-goes-after-manager-of-future-fractal-investments-and-arcane-resonance-fund/"},{"date":"2025-03-11","event":"Kumar informs Arcane Resonance Fund investors the fund is down approximately 80% of its value.","source":"InvestmentNews","source_url":"https://www.investmentnews.com/regulation-legal-compliance/sec-accuses-college-student-of-siphoning-nearly-7-million-from-two-investment-funds/265888"},{"date":"2026-03-26","event":"SEC files settled civil complaint against Krish Kumar in U.S. District Court for the Northern District of Oklahoma (Case No. 26-cv-00184), charging violations of the Securities Act of 1933, Securities Exchange Act of 1934, and Investment Advisers Act of 1940. Kumar consents to permanent and conduct-based injunctions without admitting or denying allegations. Monetary remedies pending.","source":"SEC Litigation Release LR-26507","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26507"}],"sources_used":[{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26507","name":"SEC Litigation Release LR-26507 — Krish Kumar","type":"regulatory","archive_url":"http://web.archive.org/web/20260427020321/https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26507","credibility":1,"archive_timestamp":"2026-04-27T02:03:21+00:00"},{"url":"https://www.sec.gov/files/litigation/complaints/2026/comp26507.pdf","name":"SEC Complaint — comp26507.pdf","type":"court_filing","archive_url":"http://web.archive.org/web/20260427020328/https://www.sec.gov/files/litigation/complaints/2026/comp26507.pdf","credibility":1,"archive_timestamp":"2026-04-27T02:03:28+00:00"},{"url":"https://news.bloombergtax.com/banking-law/college-student-misappropriated-nearly-7-million-sec-says","name":"Bloomberg Law — College Student Misappropriated Nearly $7 Million, SEC Says","type":"news_article","archive_url":"https://web.archive.org/web/20260927091328/https://news.bloombergtax.com/banking-law/college-student-misappropriated-nearly-7-million-sec-says","credibility":1,"archive_timestamp":"2026-09-27T09:13:28+00:00"},{"url":"https://www.investmentnews.com/regulation-legal-compliance/sec-accuses-college-student-of-siphoning-nearly-7-million-from-two-investment-funds/265888","name":"InvestmentNews — SEC accuses college student of siphoning nearly $7 million from two investment funds","type":"news_article","archive_url":"http://web.archive.org/web/20260726154322/https://www.investmentnews.com/regulation-legal-compliance/sec-accuses-college-student-of-siphoning-nearly-7-million-from-two-investment-funds/265888","credibility":2,"archive_timestamp":"2026-07-26T15:43:22+00:00"},{"url":"https://www.fa-mag.com/news/sec-settles-with-okla--college-student-who-allegedly-duped-investors-out-of--7-8m-86446.html","name":"FA Magazine — College Freshman Duped Investors Out Of Nearly $7M, SEC Says","type":"news_article","archive_url":"http://web.archive.org/web/20260726230452/https://www.fa-mag.com/news/sec-settles-with-okla--college-student-who-allegedly-duped-investors-out-of--7-8m-86446.html","credibility":2,"archive_timestamp":"2026-07-26T23:04:52+00:00"},{"url":"https://fxnewsgroup.com/forex-news/regulatory/sec-goes-after-manager-of-future-fractal-investments-and-arcane-resonance-fund/","name":"FX News Group — SEC goes after manager of Future Fractal Investments and Arcane Resonance Fund","type":"news_article","archive_url":"http://web.archive.org/web/20260422150239/https://fxnewsgroup.com/forex-news/regulatory/sec-goes-after-manager-of-future-fractal-investments-and-arcane-resonance-fund/","credibility":2,"archive_timestamp":"2026-04-22T15:02:39+00:00"},{"url":"https://www.mofo.com/resources/insights/260421-top-5-sec-enforcement-developments-for-march-2026","name":"Morrison Foerster — Top 5 SEC Enforcement Developments for March 2026","type":"research","archive_url":"http://web.archive.org/web/20260921052645/https://www.mofo.com/resources/insights/260421-top-5-sec-enforcement-developments-for-march-2026","credibility":2,"archive_timestamp":"2026-09-21T05:26:45+00:00"},{"url":"https://www.law360.com/articles/2458407/student-fleeced-pals-families-with-7-8m-fraud-sec-says","name":"Law360 — Student Fleeced Pals' Families With $7.8M Fraud, SEC Says","type":"news_article","archive_url":"http://web.archive.org/web/20260329071619/https://www.law360.com/articles/2458407/student-fleeced-pals-families-with-7-8m-fraud-sec-says","credibility":2,"archive_timestamp":"2026-03-29T07:16:19+00:00"},{"url":"https://alphabetastock.com/krish-kumar-sec-fraud-7-8-million-retail-investors-june-2026/","name":"AlphaBetaStock — SEC Charges Krish Kumar in $7.8 Million Fraud Scheme","type":"news_article","archive_url":"https://web.archive.org/web/20260927002634/https://alphabetastock.com/krish-kumar-sec-fraud-7-8-million-retail-investors-june-2026/","credibility":3,"archive_timestamp":"2026-09-27T00:26:34+00:00"},{"url":"https://brokerwatch.com/krish-kumar-investment-loss-investigation/","name":"BrokerWatch — Krish Kumar Investment Loss Investigation","type":"community_report","archive_url":"https://web.archive.org/web/20260927002647/https://brokerwatch.com/krish-kumar-investment-loss-investigation/","credibility":3,"archive_timestamp":"2026-09-27T00:26:47+00:00"}],"source_tags":[],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-code-investigator","created_at":"2026-09-26T23:08:10.49351+00:00","updated_at":"2026-09-27T09:16:27.628546+00:00"}}