The United States Securities and Exchange Commission (SEC) imputed the promoters of the Initial Cryptocurrency Offering (ICO) Bitcoiin2Gen that in 2017 was promoted with the image of the action movie actor Steven Seagal.
The SEC has also singled out these individuals for allegedly being involved in various cryptocurrency scams, including the ICO promoted by the actor.
In a press release, published on the SEC website on February 1, the agency states as the main reason for its complaint that the founder of Bitcoiin2Gen, Jhon DeMarr; Start Options company creator Kristijan Krstic; and promoter Robin Enos, scammed investors out of more than $ 11 million. This was done through these companies to buy securities of digital assets known as B2G tokens, which would be delivered on the Ethereum blockchain.
In addition, those named would have promised investors that the funds invested would be used to develop a currency that would be “mineable.” They falsely said that the tokens would be tradable on a cryptocurrency trading platform, owned by the platform, which would be launched in early 2018. However, exclude actor Steven Seagal from the current indictment.
This SEC complaint alleges that promises about B2G tokens were fake, Bitcoiin2Gen was a hoax, and Krstic and DeMarr allegedly misappropriated millions of dollars of funds from their investors for their own personal gain.
The conduct alleged in this action was a blatant attempt to victimize those interested in digital asset technology and these defendants must be held accountable. In reality, we argue that these companies were fraudulent, intended simply to misappropriate investor funds.
Kristina Litman, Chief of the Cyber Unit in the SEC’s Enforcement Division.
Start of the scam with Bitcoiin2Gen
The SEC alleges that Krstic and DeMarr created the alleged cryptocurrency trading and mining platform Start Options in December 2017. They falsely claimed that “It was the largest Bitcoin exchange in volume and liquidity in euros” and it was constantly touted as the best and safest Bitcoin exchange by independent media outlets.
The United States Securities and Exchange Commission accuses Krstic and DeMarr of violating the anti-fraud and registration provisions of federal securities laws, and Enos for helping to incite anti-fraud violations. The SEC complaint seeks injunctive relief and restitution plus interest. In addition, it will impose fines and a ban against those named from operating and directing companies in the future.
The New York Eastern District Attorney’s Office and the Department of Justice, Fraud Section, announced charges against DeMarr. Source: BrianAJackson / elements.envato.com
While in a side action, the United States Attorney for the Eastern District of New York and the Department of Justice, Fraud Section, announced charges against DeMarr.
Image of actor Steven Seagal used for Bitcoiin2Gen scam
Media reports that the people accused by the SEC, in addition to having scammed investors with Bitcoiin2Gen, also did the same with actor Steven Seagal.
Apparently this martial arts expert was promised $ 750,000 in B2G tokens and $ 250,000 in cash for promoting the Bitcoiin2Gen ICO in 2018. However Seagal, indicated that it had only received USD 157,000 for closing this operation, As reviewed by CriptoNoticias on February 28, 2020.
The interpreter agreed to pay USD 314 thousand in fines for two different charges. Additionally, Seagal agreed not to promote any securities, digital or otherwise, for three years.
It is part of this story that in this same year, the cryptocurrency project Bitcoiin, announced that the actor Stevan Seagal, left the relationship as an ambassador of the brand after the completion of its Initial Coin Offering.
Along with the internationally renowned actor, the founders were also abandoning the project to make the cryptocurrency “genuinely anonymous.” By doing this they were trying to imitate Bitcoin, and make the token look genuine.
Notably Tenesse state authorities issued a warning about the project, and in the state of New Jersey the Bitcoin team was ordered to cease its operations.
Seagal was appointed in June 2018 as a special envoy of the Kremlin to deepen cultural, artistic and youth relations between the United States and Russia. The performer’s net worth is estimated to be $ 16 million in 2020.
