$11 Million Crypto Scam Involving Steven Seagal…

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A private eye turned cryptocurrency promoter who used Steven Seagal to defraud investors of $11 million has been jailed for five years…

John DeMarr, 58, of Santa Ana, Calif., faced federal court in Brooklyn for sentencing last week, after pleading guilty to one count of conspiracy to commit securities fraud .

This admission was linked to a scam perpetrated by DeMarr and others that saw them courting investors for their cryptocurrency company Bitcoiin2Gen (B2Gen) and crypto-trading platform, Start Options.

However, the millions of dollars invested were instead diverted through various accounts and, in Marrs’ case, used to buy a Porsche, expensive jewelry and renovations to her California home.

IRS Criminal Investigation Special Agent Tyler Hatcher said: DeMarr, a promoter of several digital asset-related companies, conspired with others to defraud victims and made misleading claims for profit important.

DeMarr embezzled funds to accounts he controlled and spent the money maintaining a lavish lifestyle. Those who line their pockets with the profits from these schemes need to know that they will not go unnoticed and that they will be held accountable.

Steven Seagal left on the hook for $314,000 The crypto scam used celebrity endorsements, some fake and some paid, the latter featuring martial arts film icon Steven Seagal.

Seagal was promised $250,000 in cash and $750,000 in B2Gen tokens for his endorsement, but ended up paying a $314,000 settlement to the Securities and Exchange Commission (SEC) for not disclosing his role.

Although DeMarr pleaded guilty, U.S. District Judge LaShann DeArcy Hall refused to show clemency and sentenced DeMarr to 5 years in prison and ordered him to pay $3,513,305.41 in forfeiture.

US Attorney Breon Peace said of the sentence: DeMarr took advantage of those who trusted him, persuading them to double down on their investments despite knowing his cryptocurrency companies and dodgy celebrity endorsements were scams. used to fund his lavish lifestyle.

He added: The victims ultimately lost everything, so it’s fitting that DeMarr loses his freedom for concocting this fraud.

Hatcher said: Cryptocurrency systems are on the rise. The Internal Revenue Service Criminal Investigation and our law enforcement partners are working diligently to identify and investigate the criminals who commit these schemes, like John DeMarr.

The cryptocurrency has been in the news recently due to the FTX scandal, which had a poker dimension, with the attorney at the heart of the Ultimate Bet scandal, Daniel S. Friedberg, also being part of the FTX setup.

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