The U.S. Securities and Exchange Commission (SEC) has charged actor Steven Seagal for unlawfully selling a cryptocurrency funding scheme claiming to be “the subsequent era of bitcoin.” Seagal did not disclose that he was being compensated in money and crypto by Bitcoiin2gen, or B2G, for advertising and marketing its token providing, such as on Twitter and Facebook.
SEC Charges Stevel Seagal for Unlawful Crypto Promotion
The SEC introduced Thursday that it has settled prices towards Hollywood actor and producer Steven Seagal over his promotion of a cryptocurrency funding product. The SEC defined that Seagal “touted on social media a safety that was being provided and bought in an preliminary coin providing (ICO) with out disclosing that the issuer was paying him for the promotions.” The providing was carried out by Bitcoiin2gen, additionally identified as B2G. Noting that the actor violated the Securities Act, the Commission elaborated:
Seagal did not disclose he was promised $250,000 in money and $750,000 value of B2G tokens in trade for his promotions, which included posts on his public social media accounts encouraging the public to not ‘miss out’ on Bitcoiin2gen’s ICO and a press launch titled ‘Zen Master Steven Seagal Has Become the Brand Ambassador of Bitcoiin2gen.’
“The SEC’s order finds that Seagal violated the anti-touting provisions of the federal securities legal guidelines. Without admitting or denying the SEC’s findings, Seagal agreed to pay $157,000 in disgorgement, which represents his precise promotional funds, plus prejudgment curiosity, and a $157,000 penalty. In addition, Seagal agreed to not promote any securities, digital or in any other case, for 3 years,” the company clarified.
Steven Seagal for ‘the Next Generation of Bitcoin’
Steven Seagal earned his web value as a giant motion film star of the 1980s and 90s. He appeared in additional than 50 movies, together with Above the Law, Hard to Kill, Out for Justice, Under Siege, and Out of Reach. Seagal’s web value is now $16 million, in keeping with celebritynetworth.com. The 67-year-old presently lives in Moscow, Russia. President Vladimir Putin offered a Russian passport to him in 2016.
According to the SEC’s order, from about Feb. 12 to March 6, 2018, Seagal touted the B2G cryptocurrency funding alternative on his Twitter and Facebook accounts. At the time, he had roughly 107,000 followers on Twitter and 6.7 million on Facebook. While he was not operating the ICO, Seagal allowed his footage for use on Bitcoiin2gen’s official web site and advertising and marketing supplies. He moreover obtained funds for collaborating in a webinar with potential investments.
Bitcoiin2gen described its B2G tokens as “the subsequent era of bitcoin,” the SEC wrote. Its advertising and marketing supplies say “Bitcoiin – 2nd Generation. Bigger and higher than the authentic.” The firm claimed that the funds raised could be used to “construct an ‘ecosystem’ that will permit customers to commerce B2G tokens, present pockets staking, and commerce altcoins and fiat currencies, all ‘on a safe, complete platform,’” the SEC described, noting:
Participants in the ICO invested bitcoin, U.S. , euros, or made funds through bank card in trade for B2G tokens.
The SEC additional identified that Bitcoiin2gen’s press launch included a quote from Seagal stating that he endorsed the token providing “wholeheartedly.” Noting that these promotions got here six months after its DAO Report warning that cryptocurrencies bought in ICOs could also be securities, the SEC emphasised that “in accordance with the anti-touting provisions of the federal securities legal guidelines, any superstar or different particular person who promotes a digital token or coin that may be a safety should disclose the nature, scope, and quantity of compensation obtained in trade for the promotion.” Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit, clarified:
These traders had been entitled to learn about funds Seagal obtained or was promised to endorse this funding so they may resolve whether or not he could also be biased. Celebrities are usually not allowed to make use of their social media affect to tout securities with out appropriately disclosing their compensation.
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Disclaimer: This article is for informational functions solely. It shouldn’t be a proposal or solicitation of a proposal to purchase or promote, or a suggestion, endorsement, or sponsorship of any merchandise, companies, or firms. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the firm nor the writer is accountable, straight or not directly, for any injury or loss induced or alleged to be brought on by or in reference to the use of or reliance on any content material, items or companies talked about on this article.
Images courtesy of Shutterstock, CNN, and Bitcoiin2gen.
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