Steven Seagal settles SEC cryptocurrency investigation

Steven Seagal settles SEC cryptocurrency investigation


Under siege by a U.S. regulator, former action film star Steven Seagal has agreed to pay more than $330,000 for touting an initial coin offering without revealing he was getting paid for his glowing recommendations.

Seagal, who starred in “Above the Law, “The Patriot,” and, yes, “Under Siege,” in early 2018 used social media posts to urge fans and other investors not to “miss out” on Bitcoiin2Gen’s initial coin offering, the Securities and Exchange Commission said in an order issued on Thursday.

The 67-year-old actor and martial arts exponent’s promotions also included a news release titled: “Zen Master Steven Seagal Has Become the Brand Ambassador of Bitcoiin2Gen,” the SEC said.

Actor Steven Seagal poses on the the red carpet during the closing ceremony of the 3rd edition of the El Gouna Film Festival in the Egyptian Red Sea resort of el Gouna on Sept. 27, 2019.

However, Seagal failed to disclose that he’d been promised $250,000 in cash and $$750,000 in Bitcoiin2Gen tokens in exchange for his recommendations. The omission violated federal securities laws that require celebrities and others who tout virtual tokens or coins that are securities to disclose any compensation they receive in exchange.

“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.”


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