Will Other ICO Promoters Face A Similar Fate?
The SEC have announced earlier today that they have settled charges against the actor Steven Seagal. The action movie star was accused of failure to disclose payments that he has received promoting the ICO known as Bitcoiin2Gen (B2G).
The SEC found that Seagal failed to disclose that he was promised payments for promoting the project on social media. This included a $250,000 cash advance and the value of $750,000 in B2G tokens.
In now-deleted posts on Twitter and elsewhere Seagal urged followers not to "miss out" on Bitcoiin2Gen's ICO. Furthermore, a press release titled "Zen Master Steven Seagal Has Become the Brand Ambassador of Bitcoiin2Gen."
The SEC Strikes Back
While Seagal didn't admit or deny the SEC's findings he agreed to pay a fee. This fee was comprised of 2 separate fines $157,000 for disgorgement and an additional $157,000 penalty totaling at $314,000. Seagal further agreed not to promote securities, digital or otherwise, for three years.
"These investors were entitled to know about payments Seagal received or was promised to endorse this investment so they could decide whether he may be biased," said Kristina Littman, Chief of the SEC Enforcement Divisionâs Cyber Unit
Another famous individual that promoted Bitcoiin2Gen was John McAfee the creator of McAfee Antivirus. McAfee promoted the project on Twitter during early 2019, long after their ICO but later distanced himself in May 2019 claiming that he is no longer associated with the project.
I am no longer associated with B2G in any manner. I am neither promoting not working with them.â John McAfee (@officialmcafee) May 4, 2019
Seeing that McAfee is currently on the run from U.S. authorities, it is extremely doubtful that he will pay a fine to the SEC.
Bitcoiin2Gen had its all-time-high of $0.67 during the 5th of February 2019 and is now trading at $0.000182. It is only trading on 2 exchanges currently, being STEX & Coinall and has a daily volume of $55.
It is safe to say that most that have invested in the project have lost their investment if they've held on to the coin.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado