The US Securities and Exchange Commission has charged three people with a coin offering fraud in which their company Bitcoiin2Gen withdrew more than $ 11 million from retail investors. Actor Steven Seagal was involved in the ICO, which took place in 2018, as the promoter of the newly created token.

Scam by investors worth more than $ 11 million

The Securities and Exchange Commission (SEC) has persecuted three people and allegedly defrauded hundreds of retail investors. The US guard dog has billed them an initial 2018 coin offer for the heavily advertised Bitcoiin2Gen token, which was promoted by famous Hollywood actor Steven Seagal.

The US federal agency claimed Kristijan Krstic, founder of Start Options and Bitcoiin2Gen, John DeMarr, the main promoter of these companies in the US, and Robin Enos managed to scam many investors out of more than $ 11 million.

The three allegedly commissioned two organized fraudulent and unregistered digital asset securities offerings from December 2017 to May 2018.

According to the allegations, individuals said their digital exchanges were the largest in terms of euro volume and liquidity, and “consistently rated as the best and safest bitcoin exchange by independent news media.”

Steven Seagal. Image by TheVerge

The fraudulent promotional material allegedly contained misleading allegations, including the fact that the B2G tokens would be available on the Ethereum blockchain.

The three also reaffirmed their victims that the funds invested would help develop a “degradable” coin that can be traded on a proprietary digital asset trading platform in April 2018.

“The conduct alleged in this action was an overt attempt to harass those interested in digital asset technology and these defendants should be brought to justice,” said Kristina Littman, director of cyber for the SEC Enforcement Division. “In reality, these ventures were believed to be fraudulent companies that merely aimed to misuse investors’ funds.”

The SEC’s complaint alleged that Krstic and Demarr violated the anti-fraud and registration requirements of the Federal Securities Act. At the same time, her partner Enos sees charges of aiding and abetting the anti-fraud violations. The complaint concerns disgorgation, injunctive relief, interest, fines and a bar association against Krstic and DeMarr.

Actor Steven Seagal as collateral damage

While promoting the Bitcoiin2Gen, the project’s thought leaders managed to get actor Steven Seagal on board. In 2018 he was active as a sponsor of the digital coin B2G through his public social media accounts.

It was then that Seagal encouraged fans not to miss the opportunity. In the initial stages of the ICO, the fraudulent brand even published a press release entitled “Zen Master Steven Seagal has become a brand ambassador for Bitcoin2Gen”.

As reported by CryptoPotato, Seagal was promised $ 250,000 in cash and $ 750,000 of the ICO’s native cryptocurrency for promoting the project upon completion of the sale.

Following this, the SEC accused the actor of failing to disclose these payments. Two years later, Seagal agreed to pay $ 157,000 in disgorgation, a $ 157,000 fine, and an undisclosed amount of prejudice interest. The actor also accepted not to advertise any securities for three years.

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