2021-02-02 13:11:21
SEC accused organizers of ICO promoted by Steven Seagal of $ 11 million fraud
The US Securities and Exchange Commission (SEC) has indicted three participants in the Bitcoiin2Gen cryptocurrency investment scheme for committing securities fraud.
According to the regulator, B2G attracted investors with promises of high returns on investments in its own cryptocurrency Bitcoiin, which was distributed through an unregistered initial coin offering (ICO). The organizers sent investors brochures with false information, in which they stated that B2G would be available for mining and production in April 2018, but by that time they had already stopped their activities. Thus, the fraudsters in the person of the founder Christian Krstic, as well as promoters John Demarre and Robin Enos managed to collect about $ 11 million, the lawsuit says.
Krstic and Demarr are accused of violating anti-fraud and registration requirements in connection with the distribution of securities, Enos is accused of aiding their criminal activities. Demarre's Office of the Attorney's Office for the Eastern District of New York and the Department of Justice also indicted Demarre under criminal charges.
“Demarr fraudulently squandered at least $ 1.8 million - about half of the fiat money he collected from investors - on personal needs, including buying cars and paying off credit card debts. Krstic, in turn, received over $ 9 million in investment funds in fiat currency and digital assets, ”the SEC said. Enos received about $ 12,000 from Demarre to help promote the project.
Last year, the SEC settled claims against actor Steven Seagal, who promoted B2G as a brand ambassador and did not report receiving $ 157,000 in B2G tokens for his participation, imposing a fine on him. The SEC then announced that it considers Bitcoiin a security and is continuing its investigation. The last lawsuit does not include Segal's name.
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