Promoter Pleads Guilty in Crypto Investment Fraud Case Involving “Bitcoiin” Scam

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A California-based man pleaded guilty on Friday to his participation in a “coordinated cryptocurrency and securities fraud program” that has already won the approval of famous actor Steven Seagal.

John DeMarr has pleaded one count of conspiracy to commit securities fraud and will be sentenced in January. He faces a maximum sentence of five years in prison. DeMarr was arrested and charged in February and charged by US prosecutors with conspiring to “defraud the victims of investors into investing in their companies, Start Options and B2G, on the basis of materially false and misleading statements.”

DeMarr, along with two others, were indicted by the SEC earlier this year.

As prosecutors noted, B2G also known as “Bitcoiin” appeared in early 2018 as part of the initial craze for coin offerings. B2G was an extension of the Start Options program meant to keep investors around. “At the end of January 2018, rather than allowing start-up options investors to withdraw money from their accounts after the required period, DeMarr and others asked investors to roll over their accounts into an initial coin offering. B2G’s unregistered ICO, the second of two fraudulent companies in which DeMarr was involved. “

The infamous Bitcoiin got approval from Seagal, who then struck a deal with the SEC in February 2020. He neither admitted nor denied the findings of the SEC, which at the time alleged that he did not not disclosed the payments he had received.

Friday’s statement says the investigation into B2G / Start options is ongoing.

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