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- Seagal failed to disclose the payment of nearly $1 million he received for selling the investment, to the SEC.
- The SEC charges accuse Seagal of receiving $250,000 in fiat currency, and $750,000 worth in B2G tokens for his promotions of the ICO.
- The SEC had established six months prior to B2G’s endorsement, that cryptocurrencies offered in ICOs could be considered securities.
The United States Securities Exchange Commission announced charges against actor, producer, and musician, Steven Seagal for illegally backing an initial coin offering (ICO) from Bitcoin2Gen (B2G). Seagal failed to disclose the payment of nearly $1 million he received for selling the investment, to the SEC.
The SEC charges accuse Seagal of receiving $250,000 in fiat currency, and $750,000 worth in B2G tokens for his promotions of the ICO.
Seagal made numerous social media posts where he asked people to not “miss out” on Bitcoin2Gen’s offerings and also made a Twitter post on being the worldwide brand ambassador for Bitcoin2Gen. The company also made statements on a press release where they stated that Seagal endorsed the cryptocurrency fully.
The SEC had established six months prior to B2G’s endorsement, that cryptocurrencies offered in ICOs could be considered securities.
The commission demands that according to anti-touting provisions of fed securities laws, individuals who back a cryptocurrency and promote it must disclose the “nature, scope, and the amount of compensation received in exchange for the promotion.”
It is the failure to comply with this law that resulted in Seagal’s charges. This law is present so that investors are aware the Seagal is a paid endorser of the ICO and can, therefore, make more informed decisions about their investments.
Kristina Littman, SEC Enforcement Division Chief, says, “Celebrities are not allowed to use their social media influence to tout securities without appropriately disclosing their compensation.”
Seagal has been reported to offer to make a payment of $157,000 in disgorgement, including prejudgement interests and another $157,000 in a penalty, but has yet to deny or admit to the SEC’s accusations.
In addition to the fine, he also accepted not further to promote any cryptocurrencies or other assets deemed as securities for a period of 3 years. The SEC has advised the public to be once again wary of celebrity endorsements of recognized securities and invest based on persona research.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
