SEC: Steven Seagal Failed to Disclose Bitcoin CompensationSEC: Steven Seagal Failed to Disclose Bitcoin Compensation
The famous actor touted an initial coin offering from Bitcoiin2Gen in social media postings without telling followers that he was being compensated for his endorsement, according to the SEC.
Even Steven Seagal isn’t above the law, according to the SEC.
The actor, famous for roles in the action films Under Siege and Marked for Death, was charged by the SEC for promoting and endorsing an initial coin offering (ICO) conducted by Bitcoiin2Gen (B2G) in his social media postings, encouraging his followers to invest, according to the SEC order.
Between Feb. 12, 2018, and March 6, 2018, Seagal made posts telling the public they should not “miss out” on B2G’s ICO offering. He was also quoted in a press release issued by B2G entitled “Zen Master Steven Seagal Has Become the Brand Ambassador of Bitcoiin2Gen,” in which he endorsed the ICO, according to the order.
However, Seagal failed to tell his followers and fans that he had been promised $250,000 in cash and $750,000 in B2G tokens in return for endorsing and promoting the ICO. The SEC had previously decided that coins sold in ICOs could be considered as securities, and released an advisement that celebrities who promote virtual tokens or coins that could be considered securities must disclose information about the kind and quantity of compensation they’re receiving in return for their endorsement.
“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,” Kristina Littman, the chief of the SEC Enforcement Division’s Cyber Unit, said. “Celebrities are not allowed to use their social media influence to tout securities without appropriately disclosing their compensation.”
While Seagal did not admit or deny the SEC’s findings, he agreed to pay $157,000 in disgorgement, along with a $157,000 penalty and prejudgment interest. Seagal will also not be allowed to promote or endorse any securities for the next three years.
