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- The SEC charged three professionals of defunct crypto firm Bitcoiin2Gen on Monday
- The trio allegedly duped the investors of $11.4 million through the 2018B2G token offering
- They assured delivery of an Ethereum-based token to investors of Bitcoiin2Gen
The U.S. Securities and Exchange Commission, established in 1934, aimed to recover investors’ lost confidence caused by the 1929 stock market outrage.
It has a three-fold scheme that involves various functions. The first one is to secure investors and institutions. The second function is to regulate an orderly situation in the markets. Last but not least is to provide the injectors with capital formation.
The story of three infamous associates
The SEC charged three professionals of defunct crypto firm Bitcoiin2Gen on Monday. The charge levied is of fraudulent activities. They have duped the investors of $11.4 million. The move was executed through the provision of the 2018B2G token offering. Actor Steven Seagal backs the respective tokenstokenThe respective token is supported by actor Steven Seagal.
Bitcoiin2Gen aims to establish an enhanced and more developed version of Original Bitcoin. Thus, it claims to be a self-sustaining cryptocurrency.
Kristijan Krstic, Bitcoiin2Gen and Start Options founder, along with John DeMarr, the company promoter, disrupted federal securities laws of federal securities. This incident happened during the 2018 raise.
According to the SEC, John DeMarr associate Robin Enos was found aiding and assisting the entire process. John has also been levied with criminal fraud charges in a corresponding suit filed on Monday.
The trio allegedly assured delivery of an Ethereum-based token to investors of Bitcoiin2Gen. The SEC denied the existence of any such tokens in its framework. They allegedly circulated misleading brochures among these 460 investors.
The number 460 represents the potential count of those who was promised a mineable and tradable digital token- B2G. Further, they sold this pretentious act for funds they never gave back.
Involvement of actor Steven Seagal
Bitcoiin2Gen also sustained the support of actor Steven Seagal. Kristijan and John hustled to get the actor on board as the brand ambassador. This choice was made over his usual image of a promoter who earns $120,000. Thus, it was a trick to escalate B2G.
However, Steven managed to exempt himself from the respective charges. Thus, he was not mentioned in the Monday Suit.
The accusations welcome the ICO crash of the regulator into its consecutive presidential administration. Regulators first started with chasing these allegedly corrupt ICO projects during the administration of President Trump. However, they look composed to carry on that trend under Biden’s term period.
Thus, it will be interesting to observe how the existing regulators adapt to the regulations implemented by newly chosen President Joe Biden regulations.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
