Veteran Actor, Steven Seagal has been fined an amount of $314 for purportedly promoting a Crypto without revealing wages he took for that. On Thursday, the US Security and Exchange Commission (SEC) declared charges against him in breach of Federal Security Laws.
According to the Financial Times, the Russia based US citizen was cited for promoting an ICO of an Altcoin known as Bitcoiin2Gen and did not disclose that he was assured of $1 million in tokens and cash. Bitcoiin2Gen ostensibly announced Seagal as its brand ambassador two years ago in a press statement.
It was noted that the actor urged his followers on social media not to miss the opportunity to invest in Bitcoiin2Gen. Kristina Littman, an SEC’s chief enforcement officer, is quoted as saying that stars are not permitted to use their social media impact to promote securities without duly revealing payment received.
Accusation And Fine
Mr Seagal was indicted of infringing federal anti-touting edicts concerning securities. Bloomberg reports indicate that the actor neither confirmed nor disputed the SEC’s charges. “Mr Seagal co-operated fully with the SEC’s investigation, and this matter is now behind him,” Ivan Knauer, the lawyer for Seagal stated.
Knauer maintained the charges against the actor does not require an intent to commit a crime. Moreover, the SEC did not charge him for any fraudulent demeanour.
Out of the $314,000 fine, $157,000 is the regurgitation of money Seagal earned through the deal; with the other $157,000 being penalty and interest. Additionally, the actor is prohibited from promoting securities for the next three years.
The SEC DAO report considers ICOs as a security, and therefore expect them to be guided by the same regulations like disclosure and marketing. In the past, other public figures involved in such sales have been slapped with similar penalties.
It will be recalled that in 2018, the SEC fined DJ Khaled, a musician and Floyd Mayweather, a boxer, for promoting ICOs. It was the first-ever touting violation case involving digital currency.
The SEC accused Mayweather of failing to disclose promotional fees the then World Heavyweight champion received from three ICO which included $100,000 from Centra Tech Inc., and $200,000 from others. Khaled is also said to have received $50,000 payment from Centra Tech, and posted on his social media accounts referring to Tech Centra as a “Game changer.”
It brings to mind how the famous Instagram post, “You can call me Floyd Crypto Mayweather from now on” landed the boxing legend in trouble with the SEC in 2018. Mayweather and Khaled consented to pay disgorgement, penalties and interest of $614,775 and $152, 725 respectively and were both banned from promoting securities for three years.