The U.S. Securities and Exchange Commission has accused the three individuals of several cryptocurrency scams, including the first coin offering since 2018 of Bitcoiin2Gen promoted by Steven Seagal.
From December 2017 to May 2018, Bitcoin founder Gen John DeMarr, Start Options founder Christian Krstic and promoter Robin Enos defrauded investors to acquire more than $ 11 million using fake and unregistered securities, according to the SEC on February 1, from December 2017 to May. 2018.
The SEC claims that Krstic and DeMarr first used the alleged cryptocurrency exchange and trading platform in December 2017 and January 2017, and false claims that it was the “largest Bitcoin exchange in terms of volume and liquidity in euros” at the time.
From January to May 2018, the trio then promoted the Bitcoiin2Gen ICO, with the Securities and Exchange Commission accusing individuals of intentionally distributing fake marketing materials to investors.
The complaint alleges that Bitcoiin2Gen’s empty promises included Ethereum’s alleged compatibility of its B2G token, arguing that the funds raised would be reinvested in developing the crypto-asset mining business and that the token B2G would be traded on a separate exchange. However, according to the Securities and Exchange Commission:
“Bitcoin2Gen was a scam and Krstic and DeMarr allegedly misused millions of dollars in investor money for their own benefit.”
Krstic and DeMarr will be charged with violating anti-fraud regulations and file filing under federal securities laws, while Enos will be charged with aiding and abetting fraud. The SEC is demanding layoffs as well as benefits, fines and barrier against Krstic and DeMarr from current or managerial companies in the future.
“The behavior envisaged in this law was a flagrant attempt to sacrifice those interested in digital asset technology, and these defendants should be held accountable,” said Christina Littmann, SEC’s head of internet.
On the same day, the Attorney General’s Office and the Department of Justice announced parallel criminal cases against DeMarr.
Aside from investors, Bitcoiin2Gen appears to have cheated actor Steven Seagal, who promised to provide $ 750,000 in B2G tokens and $ 250,000 in cash to promote the Bitcoiin2Gen ICO in 2018. However, Segal claims he received only $ 157,000 in support of the show.
In February 2020, the SEC accused Seagal of failing to disclose the reward it received for promoting the ICO on social media and ordered a commission of $ 330,000.