Steven Seagal Charged For Unlawfully Promoting 2018 ICO

The U.S. Securities and Exchange Commission (SEC) announced that it has settled charges with Steven Seagal, the well-known actor because he failed to disclose payments that he received for promoting an initial coin offering (ICO) in 2018. The actor paid penalty 4,000 big, for promoting the controversial ETH-based token, Bitcoiin2gen, known for the implementation of a multi-level marketing scheme with the goal of recruitment of ICO backers.
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The 69-year-old actor has been charged for failing to disclose payments that he received for the promotion of the Bitcoiin2Gen’s (B2G) ICO. Seagal did not disclose that he was guaranteed $250,000 in cash and Bitcoiin2gen tokens worth something about $750,000 as a payment for his promotion of the ICO on social media. The actor communicated to his fans not to “miss out” on the ICO of the company and stated that he endorsed the company “wholeheartedly” the SEC said in the press release.

Also, Seagal had published a press release titled “Zen Master Steven Seagal Has Become the Brand Ambassador of Bitcoiin2Gen.” While Hollywood endorsements of crypto projects are not new under the sky, the U.S. Securities and Exchange Commission has moved on celebrities that did not disclose that they were paid to endorse projects.

 “Celebrities are not allowed to use their social media influence to tout securities without appropriately disclosing their compensation,” said Kristina Littman, the chief of the SEC Enforcement Division’s Cyber Unit.

The order of the U.S. Securities and Exchange Commission found that Seagal violated the anti-touting provisions of the federal securities law and ordered him to pay a fine and a penalty. But Seagal has not admitted or denied the findings of the Securities and Exchanges Commission, however, he agreed to abstain from any promoting activities for securities, digital or otherwise, in the duration of three years. The actor also agreed to pay $157,000 in disgorgement, this sum that he paid is the actual promotional payments that he got. In 2018, he became an ambassador to Bitcoiin2Gen in 2018, a project that had the goal to create a “superior” and “more advanced version of Bitcoin.”

Cryptocurrency projects that offer tokens with the promise of building a decentralized network will probably fall under the jurisdiction of the securities laws of the United States. The Securities Exchange Commission (SEC) has over and over again repeated their stance both through public statements and high-profile enforcement actions.