[co-author: Laura Peterson]
On February 1, 2021, the U.S. Securities and Exchange Commission (SEC) announced that it had brought charges against several individuals involved in an alleged scheme to induce investors to transfer more than $11 million to buy into an unregistered initial coin offering (ICO) of B2G tokens, which the SEC claimed was merely an elaborate sham. (
SEC v. Krstic, No. 21-0529 (E.D.N.Y. Filed Feb. 1, 2021)). The complaint, filed in the Eastern District of New York, alleged that Kristijan Krstic (“Krstic”), John DeMarr (“DeMarr”), and Robin Enos (“Enos”) (collectively, “Defendants”) conspired, in violation of securities laws, to defraud over 460 investors of $11.4 million with promises of large returns on investments from its offerings, including for B2G tokens that the defendants claimed were genuine digital assets for a mining and trading platform.
Monday, February 8, 2021
On February 1, 2021, the U.S. Securities and Exchange Commission (SEC) announced that it had brought charges against several individuals involved in an alleged scheme to induce investors to transfer more than $11 million to buy into an unregistered initial coin offering (ICO) of B2G tokens, which the SEC claimed was merely an elaborate sham. (
SEC v. Krstic, No. 21-0529 (E.D.N.Y. Filed Feb. 1, 2021)). The complaint, filed in the Eastern District of New York, alleged that Kristijan Krstic (“Krstic”), John DeMarr (“DeMarr”), and Robin Enos (“Enos”) (collectively, “Defendants”) conspired, in violation of securities laws, to defraud over 460 investors of $11.4 million with promises of large returns on investments from its offerings, including for B2G tokens that the defendants claimed were genuine digital assets for a mining and trading platform.
John DeMarr allegedly staged his own disappearance in Montenegro to avoid disgruntled investors.
The US Securities and Exchange Commission (SEC) has charged three people with defrauding hundreds of retail investors out of more than $11 million through two fraudulent and unregistered digital asset securities offerings.
According to the SEC’s complaint, Kristijan Krstic, the founder of online companies Start Options and Bitcoiin2Gen, and John DeMarr, who was the primary US-based promoter for the companies, fraudulently induced investors to buy digital asset securities over the course of a year and a half ending in May 2018.
The SEC alleges Krstic and DeMarr touted Start Options’ purported digital asset mining and trading platform, falsely claiming it was “the largest Bitcoin exchange in euro volume and liquidity” and had been “consistently rated the best and most secure Bitcoin exchange by independent news media.”
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The U.S. Securities and Exchange Commission has charged three individuals for various cryptocurrency frauds including the 2018 initial coin offering for the Steven Seagal-promoted altcoin, Bitcoiin2Gen.
A Feb. 1 SEC announcement estimates that Bitcoiin Gen founder John DeMarr, Start Options founder Kristijan Krstic, and promotor Robin Enos duped investors out of more than $11 million through two fraudulent and unregistered securities offerings from December 2017 until May 2018.
The SEC alleges that Krstic and DeMarr first spruiked Start Options’ purported crypto asset mining and trading platform in December 2017 and January 2017, falsely claiming it was “the largest Bitcoin exchange in euro volume and liquidity” at the time.
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February 2, 2021
On Monday, the Securities and Exchange Commission (SEC) announced that it filed a complaint in the Eastern District of New York and charged three individuals “with defrauding hundreds of retail investors out of more than $11 million through two fraudulent and unregistered digital asset securities offerings.”
The SEC alleged that from December 2017 to May 2018, the defendants “fraudulently induced investors to buy digital asset securities” from Start Options and Bitcoiin2Gen. Accordingly, from December 2017 through late January 2018, the defendants purportedly “touted Start Options’ purported digital asset mining and trading platform,” falsely claiming that it was “‘the largest Bitcoin exchange in euro volume and liquidity’ and ‘consistently rated the best and most secure Bitcoin exchange by independent news media.’” Additionally, the SEC averred that in January 2018, the defendants “promoted Bitcoiin2Gen’s unregist