Three individuals are charged with fraud by the SEC

Three individuals are charged with fraud by the SEC
In its complaint filed on February 1st, the SEC alleged that Kristijan Krstic, founder of Start Options and Bitcoiin2Gen, and John DeMarr, the primary U.S.-based promoter for these companies, with the assistance from Robin Enos, fraudulently induced investors to buy worthless B2G tokens. The conduct refers back to the end of 2017 – beginning of 2018.

According to the SEC, Mr. Krstic and Mr. DeMarr raised over $11 million through two fraudulent ICOs. The complaint references a large list of violations by these three individuals, including misrepresentations of the investors, sham business activities, misappropriation of millions of dollars of investor funds for personal benefit, and others.

The SEC’s complaint charges Mr. Krstic and Mr. Demarr with violating the antifraud and registration provisions of the federal securities laws, and Mr. Enos with aiding and abetting the antifraud violations. The complaint seeks injunctive relief, disgorgement plus interest, penalties, and an officer-and-director bar against Mr. Krstic and Mr. DeMarr. In addition, Mr DeMarr is also facing criminal charges.

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