Three Charged by SEC for Promoting Steven Seagal-backed ICO in 2018

Three people involved with promoting the 2018 B2G token, championed by actor Steven Seagal have been charged by the US Securities and Exchange Commission (SEC). According to the SEC, the three individuals of the now-defunct crypto firm, Bitcoiin2Gen defrauded investors of $11.4 million via the B2G initial coin offering which was publicly promoted by Steven Seagal. 

The February 1 SEC complaint filed in US District Court for the Eastern District of New York stated that John DeMarr, founder of the Bitcoiin2Gen, Kristijan Krstic, founder of Start Options and Robin Enid, a company promoter, swindled investors out of their money through the unregistered and fraudulent securities offering from December 2017 up until May 2018. The trio reportedly conned investors to invest over $11 million in cash for tokens and products that were worth far less than they presented as well as its performance.

The complaint alleges that John DeMarr and Kristijan Krstic violated federal securities laws during the raise back in 2018 and accused DeMarr and his associate and company promoter Robin of aiding and abetting. DeMarr is also facing criminal fraud charges in a parallel lawsuit filed on February 1. The SEC also claimed that the trio promised investors of Bitcoiin2Gen an Ethereum-based token which never existed. 

The SEC stated that Start Options, created by Kristijan Krstic was a sham that was disguised as a platform for trading and mining cryptocurrencies, as was Bitcoiin2Gen, a scam that was purported as a token. The complaint also revealed that DeMarr fraudulently embezzled $1.8 million, almost half of the fiat currency he raised from investors for his personal gain, splashing them on fancy and expensive cars as well as settling his credit card debts. 

“Krstic, meanwhile, received more than $9 million of investor funds in fiat currency and digital assets.” Krstic allegedly pulled out of the scheme in 2018 without refunding investors. This despite DeMarr calling Start Options “the largest Bitcoin exchange in euro volume and liquidity,” the complaint read.

Robin Enid, the third member of the trio according to the SEC received almost $12,000 from DeMarr for his role and participation in the marketing effort. DeMarr and Enos allegedly falsely claimed that B2G tokens would be mineable and tradable by April 2018, the same month Krstic ditched the crypto project.

“They allegedly disseminated misleading brochures among 460 investors to whom they’d promised a “mineable” and “tradeable” digital token – B2G – selling the sham for funds they never returned,” the complaint read.

Actor Steven Seagal who was somewhat the face of the project was fined by the SEC in February last year for failing to disclose he had been paid $157,000 worth of B2G token to market Bitcoiin2Gen. Seagal settled related charges with the SEC in February last year and was not named in the February 1 lawsuit.