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Saturday, October 1, 2022

SEC Charges 3 People For Defrauding Investors

The SEC or Securities & Exchange Commission recently charged three people for several cryptocurrency frauds. The three people were also charged for the initial offering of the Bitcoiin2Gen, by Steven Seagal, back in 2018. Bitcoiin2Gen is an altcoin that was released back in 2018. It was founded by the founder of Start Options, Kristijan Krstic, John DeMarr as well as Robin Enos as the promoter. They are charged for duping all the first investors in the company. 

The investors were defrauded for about $11 million. It was allotted by two unregistered and fraudulent securities, ranging from December to May 2017 to 2018. This was announced by the SEC on the first of February, 2020, when the case was filed. The regulatory agency has put allegations that DeMarr, as well as Krstic, marketed their company, Start Options cryptocurrency asset mining & trading platform. This happened from December to January in 2017-18. 

SEC’s Accusations On The Individuals

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The SEC accused these individuals of disseminating, knowingly, fraudulent promotions and materials to promote as well, to the investors. They also claimed that their new company was the biggest Bitcoin exchange when it came to euro volumes or liquidity. Till May of 2018, three of them heavily promoted their fake firm in the same manner. The charges assert that Bitcoiin2Gen provided nothing more than empty promises to the public. 

Few of their several empty promises were claiming raised funds that they would use to reinvest to develop a mineable cryptocurrency asset, Ethereum compatibility to their own tokens. They also claimed that their token would be traded on the exchange for proprietaries. The SEC called it a “sham” and that the individuals had “misappropriated millions” that they collected from investors, using the funds for themselves. 

The company also scammed Steven Seagel for $1,000,000 for the firm’s promotion.

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