SEC Accuses Bitcoiin2Gen Executives of $11.4 Million Fraudulent ICO

The US SEC has filed charges against 3 executives of Bitcoiin2Gen of defrauding investors for $11.4 million through a B2G ICO advertised by actor Steven Seagal.

February 2, 2021 | AtoZ Markets – 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.

SEC Accuses Three ICO Executives Of Fraud

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 for ICO Bitcoiin2Gen between December 2017 and May 2018, offering investors to buy token.

Read also: SEC Fines Rapper T.I. $75k for Participating in Fraudulent ICO

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

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 investor funds,” 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 and abetting fraud violations. The SEC demands for the accused an injunction against the entrepreneurial activity, damages, and 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.

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

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