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The U.S. Securities and Exchange Commission (SEC), has just charged three individuals for crypto fraud related to Bitcoiin2Gen. As per the announcement on February 01, 2020, SEC charged three individuals that includes John DeMarr founder of Bitcoiin2Gen, Kristijan Krstic, founder of Start Options, and promoter Robin Enos. All three of them are accused of duping the investors for more than $11 million. The fraud was conducted through fraudulent unregistered securities offerings.
Crypto Fraud Related to Bitcoiin2Gen
According to the SEC, both Krstic and DeMarr have rolled out Start Options which was a purported crypto mining and trading platform. Both of them have falsely claimed to the investors that it is the largest Bitcoin exchange as per Euro volume and liquidity. After this, they have also promoted Bitcoiin2Gen’s ICO, which is another fraud from their side.
As SEC charges three individuals, it is revealed that they are accused of disseminating fraudulent promotional materials to the general public. The accused have also promised the investors of Ethereum compatibility with their B2G token. According to the SEC filing:
“Bitcoiin2Gen was a sham, and Krstic and DeMarr allegedly misappropriated millions of dollars of investor funds for their own personal benefit.”
Violation of Anti Fraud and Registration Provisions of Federal Securities Laws
The crypto fraud related to Bitcoiin2Gen falls under violation of anti fraud and regulation provisions, that come under the Federal Securities laws. Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit, has said that all the three individuals should be held accountable for attacking the digital assets investors. Along with this, parallel criminal charges has also been charged against DeMarr from the U.S. Attorney’s Office and the Department of Justice. A lot of people out there have been the victim of the scam done by all three of them.