SEC Fines Actor Steven Seagal for Unlawfully Promoting Crypto Offering
The Securities and Exchange Commission has settled charges against actor Steven Seagal for failing to disclose payments he received for promoting an investment in an initial coin offering.
The Securities and Exchange Commission has settled charges against actor Steven Seagal for failing to disclose payments he received for promoting an investment in an initial coin offering conducted by Bitcoiin2Gen (B2G).
The SEC claims that Seagal failed to disclose that he was promised $250,000 in cash and $750,000 worth of B2G tokens in exchange for his promotions, which included posts on his public social media accounts encouraging the public not to “miss out” on Bitcoiin2Gen’s ICO. He was also featured in a company press release titled “Zen Master Steven Seagal Has Become the Brand Ambassador of Bitcoiin2Gen.”
The promotions came six months after the SEC’s 2017 DAO Report warning that coins sold in ICOs may be securities. The SEC has also advised that, in accordance with the anti-touting provisions of the federal securities laws, any celebrity or other individual who promotes a virtual token or coin that is a security must disclose the nature, scope, and amount of compensation received in exchange for the promotion.
“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. “Celebrities are not allowed to use their social media influence to tout securities without appropriately disclosing their compensation.”
The SEC’s order finds that Seagal violated the anti-touting provisions of the federal securities laws. Without admitting or denying the findings, he agreed to pay $157,000 in disgorgement, which represents his actual promotional payments, plus prejudgment interest, and a $157,000 penalty. In addition, Seagal agreed not to promote any securities, digital or otherwise, for three years.
