Three Amigos of Fraud: Who’s Who?
In the wild, wild west of cryptocurrency, three characters have emerged – John DeMarr, Kristijan Krstic, and Robin Enos. Not the kind of friends that you want to take home to meet mom, these gentlemen have been accused of swindling unsuspecting investors out of a cool $11 million.
Bitcoiin2Gen: More Like Bitcon2Gone!
Let’s break down the fiasco, shall we? The duo of Krstic and DeMarr kicked things off by promoting a platform called Start Options, claiming it was “the largest Bitcoin exchange in euro volume and liquidity.” Spoiler alert: It wasn’t. From there, they transitioned to promoting their star-studded ICO for Bitcoiin2Gen (note the extra “i” for “fraud”?). The SEC alleges they used flashy promotional materials that were about as truthful as a politician at election time.
Promises, Promises: What Were They Selling?
Amidst the glitz and glamor of promises, the SEC has highlighted some spectacular claims made by the trio – think of them as the P.T. Barnums of crypto.
- Ethereum compatibility for their B2G token – sounds fancy, right?
- Insisted the funds raised would magically be transformed into a mineable crypto asset. Poof!
- Assured investors that their B2G token would soon be available on an illustrious proprietary exchange. Still waiting.
Oops! He Did It Again: Seagal’s Moment
Enter stage left: Steven Seagal, the action hero who needed a side gig. He was promised $750,000 in B2G tokens and $250,000 in cash for promoting the ICO. But hold the phone; it turns out he only received $157,000. Talk about a bum deal!
The Legal Fallout: Accountability Time
Fast forward to present day, and the SEC is not playing around. They are throwing the book at Krstic and DeMarr, accusing them of breaching various securities laws. Meanwhile, Enos is in for a helping hand in the fraud fiesta.
Kristina Littman, the queen of the SEC Enforcement Division’s Cyber Unit, summarized it perfectly when she said, “This action was a blatant attempt to victimize those interested in digital asset technology.”
Both criminal and civil charges are on the docket, and the SEC is hungry for some serious penalties. DeMarr is also feeling the heat from the U.S. Attorney’s Office, which has hung some criminal charges around his neck like a noose.
