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SEC accused organizers of Bitcoiin2Gen ...

SEC accuses organizers of Bitcoiin2Gen and Start Options of $ 11 million fraud
CONTENT

  • SEC Accuses Three Start Options Organizers Of Fraud

  • Steven Seagal has already paid for advertising a scam project

  • SEC will check all ICOs for fraud

International consortium of news organizations developing transparency standards.

The American regulator brought charges against the organizers of the fraudulent ICOs – Start Options and Bitcoiin2Gen. The famous actor Steven Seagal participated in the promotion of one of them.

SEC accused organizers of Bitcoiin2Gen ...

The US Securities Commission (SEC) has filed charges against three individuals involved in the creation and promotion of Start Options and Bitcoiin2Gen, a fraudulent digital asset trading platform. This was reported in an official statement from the SEC. The defendants include Christian Krstic, founder of Start Options and Bitcoiin2Gen, and John DeMarr, the main promoter of these companies in the United States..

According to the investigation, Krstic, DeMarr and Robin Enos created and disseminated deliberately false advertising of ICO Bitcoiin2Gen between December 2017 and May 2018, offering investors to buy a token. As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More B2G. The face of the advertising campaign was the famous Hollywood actor and action star of the 90s Steven Seagal, who actively encouraged investors to invest in the project.

“The promotional materials contained numerous false claims, including that B2G tokens would be developed on the Ethereum blockchain, that the invested funds would be used to develop a coin that could be mined. The criminals also promised that the trading platform would be launched in early April 2018, ”the SEC said in a statement..

As a result of powerful advertising propaganda, investors invested about $ 11 million in the project.

“Scammers have targeted those interested in digital asset technology. In fact, the companies they promote were created solely to embezzle funds from investors, “said Christina Littman, head of the SEC’s cyber department..

In the SEC lawsuit, Krstic and DeMarr are accused of violating anti-fraud and federal securities laws, and Enos is accused of aiding fraud protection violations. The SEC demands an injunction against the defendants on business activities, damages, payment of fines.

In parallel with the SEC proceedings, the Attorney’s Office for the Eastern District of New York and the US Department of Justice announced criminal proceedings against DeMarr.

Recall that in February 2020, the SEC ruled against Steven Seagal himself and imposed a $ 314,000 fine on him for advertising Bitcoiin2Gen.

SEC will not leave ICO alone

SEC accused organizers of Bitcoiin2Gen ...

The SEC is ready to check all ICOs that were held between 2017 and 2018 to identify Ponzi schemes and outright scams in the cryptocurrency market. Recall that such a decision was made by the regulator back in February 2020..

Between 2016 and 2020, the SEC filed 27 lawsuits against completed ICOs. The highest fine that was upheld by the court was $ 24 million. The defendant in the case was the Block.One ICO project, which worked to create a decentralized social network. As a result, the creators raised more than $ 4.1 billion in the sale of tokens, but later admitted to the SEC’s accusations and agreed to pay a fine of $ 24 million. ICO projects such as Bitqyck ($ 10,115,893 fine), Longfin Corp ($ 3 fine 243,613), Veritaseum ($ 1 million fine) and others.

The most notorious case of the SEC against ICO was the litigation with the Telegram team of Pavel Durov, who was also accused of illegal sale of unregistered securities. After months of litigation, the TON project was closed.

Now the SEC is accusing Ripple of illegal sale of securities. As a reminder, the first court hearing in this case will take place on February 22.

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