Investors lost $ 11.4 million in the Bitcoiin2Gen token sale featuring Steven Seagal

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The US Securities and Exchange Commission (SEC) has accused three partners of the cryptocurrency startup Bitcoiin2Gen of $ 11.4 million in an ICO involving Hollywood actor Stephen Seagal.

According to the SEC, from December 2017 to May 2018, the founder of Bitcoiin2Gen and Start Options Christian Krstic, promoter John DeMarr and partner Robin Enos offered investors “B2G digital assets with securities properties.” The application is filed in the US District Court for the Eastern District.

“The actions of the accused were a gross attempt to disorient those interested in digital technologies. Partners need to be held accountable. The startups were fraudulent and aimed at embezzling investor funds, ”said Christina Littman, head of the SEC’s cybercrime department.

Bitcoiin2Gen positioned itself as a “second generation cryptocurrency”, but it had a lot in common with financial pyramids. In particular, the project provided for a multi-level referral system with impressive partner rewards.

In February 2018, actor Steven Seagal became the brand ambassador of Bitcoiin2Gen and actively promoted the ICO campaign on social networks.

The startup raised $ 75 million. In early March 2018, the New Jersey Securities Bureau stopped the ICO of the Bitcoiin2Gen project to protect investors from possible fraud.

Recall that in February 2020, the SEC fined Segal for hiding the reward received from advertising a startup token sale and banned the actor from participating in the promotion of securities for three years.

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