SEC Charges Crypto Startups For Offering Unregistered Digital Asset Securities

By Sunil Sharma
Published February 2, 2021 Updated February 2, 2021
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SEC Charges Crypto Startups For Offering Unregistered Digital Asset Securities

By Sunil Sharma
Published February 2, 2021 Updated February 2, 2021

Securities and exchange commission (SEC) today charged two cryptocurrency startups for  defrauding investors by offering unregistered digital asset securities. The alleged fraudsters used two crypto firms Start Options and Bitcoiin2Gen to offer securities worth around $11 Million.

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SEC charged Start Options and Bitcoiin2Gen founder Kristijan Krstic and John DeMarr, primary promoter of both the companies for deceiving investors and offering them unregistered digital securities through both these firms.

As per the complaint both the individuals in January 2018, promoted unregistered digital security called B2G token via initial coin offering (ICO). One more individual Robin Enos has also been charged for aiding and abetting the antifraud violations. Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit said,

“The conduct alleged in this action was a blatant attempt to victimize those interested in digital asset technology and these defendants should be held accountable. In reality, we allege, these ventures were fraudulent enterprises aimed simply at misappropriating funds from investors.”

The complaint alleges the individuals misinformed investors over claims about B2G token as well as the exchange start options. In one of the promotions they falsely claimed start options as one of largest bitcoin exchange in euro volume and liquidity. They also claimed B2G token will be launched on Ethereum Blockchain and the invested funds will be used to create a mineable coin.

SEC alleges that Bitcoiin2Gen was a sham and alleged culprits utilized investors funds for their personal benefits and usage.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Sunil Sharma
287 Articles
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

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