Steven Seagal agrees to SEC fine over crypto promotion
The Hollywood star failed to adhere to federal regulations when he endorsed Bitcoiin2Gen
The US Securities and Exchange Commission (SEC) continues to chase cryptocurrency users to locate any potentially fraudulent activity, as well as people that fail to report income from this source or who don’t follow the proper regulations. One of the latest subjects of an investigation was the former action movie star, Steven Seagal, who is now facing fines of $314,000. According to what the SEC statement that was published on Thursday said, Seagal failed to disclose that he received payments for promoting an initial coin offering (ICO) for Bitcoiin2Gen.
According to an agreement that Seagal closed with the SEC, he is going to pay two different fines. $157,000 will be used to pay back earnings that were ill-gotten, and the other $157,000 come as a penalty for failing to disclose those payments he received. Even though he agreed to pay these fines, Seagal doesn’t believe he did anything wrong, though he did fail to disclose that he was promised $1 million for his B2G endorsements. The Hollywood actor and martial arts expert is now living in Russia and he has been an advocate and believer of the cryptocurrency industry and moreover for the B2G coins since early 2019.
The SEC has been targeting other similar promotions coming from celebrities. Apparently, it is a common trend that celebrities encourage people to participate in the market by investing or buying stocks, though, since none of them report those payments to the authorities, it is considered unlawful.
For the SEC, it continues to be unlawful and, according to Kristina Littman, chief of the SEC Enforcement Division’s cyber unit, “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.”