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By RTTNews Staff Writer | Published: 2/28/2020 9:44 AM ET
Steven Seagal, well-known Hollywood actor and producer, has been charged by the U.S. Securities and Exchange Commission (SEC) with unlawfully promoting an Initial Coin Offering (ICO). He is charged for failing to disclose payments received by him for promoting an ICO on social media, particularly in a webinar with potential investors.
The promotions were made between about February 12 and March 6, 2018.
"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 Division's Cyber Unit.
Bitcoiin2Gen announced in a press release, "Zen Master Steven Seagal Has Become the Brand Ambassador of Bitcoiin2Gen." The press release also included a quotation from Seagal stating that he endorsed the ICO "wholeheartedly." Seagal was promised $250,000 in cash and $750,000 worth of B2G tokens in exchange for his promotion.
However, the company paid Seagal only about $157,000 for these promotions, but he failed to disclose in his posts any information about the fact or amount of compensation he received.
Seagal, aged 67, agreed to settle the charges for the violation while promoting Bitcoiin2Gen ICO in 2018.
Without admitting or denying the SEC's charges, Seagal agreed to pay disgorgement of $157,000, plus prejudgment interest of $16,448.76, and a civil money penalty of $157,000 penalty to the SEC for transfer to the general fund of the U.S Treasury.
The total settlement will be paid in five installments over a period of 340 days. Seagal also agreed not to promote any securities, digital or otherwise, for three years.
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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.
Article reposted on Markethive by Jeffrey Sloe
