- The Securities and Exchange Commission (SEC) has issued charges against three executives of Bitcoiin2Gen and Start Options.
- The SEC’s charges are due to an alleged controversial Initial Coin Offering (ICO) fraud.
- SEC previously fined American celebrity Steven Seagal for not disclosing his earnings after promoting one of the projects.
According to the SEC complaint, the said firms convinced investors to invest $11 million in tokens and products that yield less than expected. In addition, both firms claimed to be a platform for trading and mining cryptocurrencies.
The SEC named Kristijan Krstic, John DeMerr, and Robin Enos to have played the mastermind game behind this ICO fraud. As a result, DeMerr got $1.8 million which he used for his benefits. Also, DeMerr gave Robin $12,000 for his assistance throughout their marketing journey.
The SEC complaint further added,
“Krstic, meanwhile, received more than $9 million of investor funds in fiat currency and digital assets.”
Meanwhile, the SEC previously sued American celebrity Steven Seagal for participating in the marketing campaign for Bitcoiin2Gen in 2018. Looking back, Seagal promoted Bitcoiin2Gen as a decentralized peer-to-peer (P2P) payment gateway using blockchain technology.
Moreover, DeMerr is facing multiple legal charges against the Department of Justice and the US Attorney’s Office for the Eastern District of New York.