SEC Files Fraud Complaint Against Steven Seagal Crypto Scam

The SEC files fraud complaints against a crypto scam shilled by Steven Seagal and against three individuals as well that were involved with crypto projects Bitcoiin2Gen and Start Options as we can see more in our latest cryptocurrency news.

The SEC files a fraud complaint against three individuals that were involved with the defunct crypto projects mentioned above since they lured $11 million out of investors in an ICO. The popular actor Steven Seagal was fined in the past for marketing one of the projects without disclosing his earnings. 2017 and 2018 were quite wild for initial coin offerings and many actors, athletes, and artists wanted to tie their names to a project. Today, the US Securities and Exchange Commission continued pressing the case against the participants in the crypto project that was linked to the actor again.

According to the SEC complaint filed in the US District Court for the Eastern District of New York, three people behind the now-defunct Bitcoiin2gen and Start Options managed to lure in small investors and invest more than $11 million in cash for tokens and products that didn’t actually do anything. Kirsitjan Krstic and John DeMarr who were the founder and chief marketer of the projects were charged in what the SEC says it’s a “sham”:

 “DeMarr fraudulently misappropriated at least $1.8 million—nearly half of the fiat currency he raised from investors—for his own personal benefit, including car payments and personal credit card debts. Krstic, meanwhile, received more than $9 million of investor funds in fiat currency and digital assets.”

DeMarr even called Start Options the biggest BTC exchange in euro volume and liquidity. The third person named in the complaint was Robin Enos who received $12,000 from DeMarr for his assistance. The two claimed B2G tokens will be minable and tradeable by April 2018 which is the same period when Krstic left the project. Seagal was fined by the SEC last February for marketing [email protected] without saying that he was actually paid $157,000 in the token.

Seagal promoted the platform as a way “to empower the community by providing a decentralized P2P payment system with its own wallet, mining ecosystem and robust blockchain platform without the need of any third party.” Today’s complaint seeks financial penalties and injunctive relief against the parties while DeMarr faces criminal charges that were filed by the Department of Justice and the US Attorney’s Office for the Eastern District of New York.