Hollywood actor, Steven Seagal, has been charged with illegal promotion of an ICO by the US Securities and Exchange Commission. The ICO in question was launched in 2018 by the crypto startup, Bitcoiin2Gen.
According to a press release, Seagal failed to disclose to investors that he was paid to promote the ICO. The Hollywood actor was promised $250,000 in cash and $750,000 in B2G tokens for promoting the ICO. He was made to post information about the project on his social media account, encouraging the public not to “miss out” on the Bitcoiin2Gen’s ICO.
The SEC further alleges that a press release by Bitcoiin2Gen also included a quotation from the Hollywood actor stating that, he “wholeheartedly” endorsed the ICO.
The SEC claims these promotions came 6 months after the agency’s 2017 DAO report which warns the public that coins sold in ICOs may be securities. It has also advised that, public figures and any other persons must disclose their remunerations before promoting security tokens.
Without admitting or denying the SEC’s verdict, Seagal has agreed to pay $157,000 in disgorgement, which represents his actual promotional payments plus prejudgement interest. He has also been made to pay a $157,000 penalty. In addition, the Hollywood actor has agreed to refrain from any securities, digital or otherwise promotions for 3 years.