Actor Steven Seagal is fined $314k for not disclosing bitcoin endorsement

Actor Steven Seagal is fined $314k for failing to tell his social media followers he was being paid to endorse a bitcoin offering he was promoting

  • Steven Seagal was fined $314,000 by the Securities and Exchange Commission
  • He failed to disclose he had been paid to promote an investment in an initial coin offering from Bitcoiin2Gen 
  • The martial arts expert was promised $250,000 in cash and $750,000 worth of B2G tokens in exchange for his promotions 
  • In addition to the fine, Seagal has also agreed not to promote any securities for three years 
  • The SEC has previously said that celebrities using social media to encourage people to buy stocks legally need to disclose details about compensation  

Actor Steven Seagal has been fined $314,000 by the U.S. securities regulator for failing to disclose he had been paid to endorse a bitcoin offering he was promoting on his social media channels. 

The Hollywood star agreed to pay the fine after being charged with unlawfully touting for failing to disclose the payments he was receiving for promoting an investment in an initial coin offering from Bitcoiin2Gen (B2G).

The Securities and Exchange Commission revealed on Thursday that it had settled the charges with Seagal.

The martial arts expert was promised $250,000 in cash and $750,000 worth of B2G tokens in exchange for his promotions. 

Actor Steven Seagal has been fined $314,000 by the U.S. securities regulator for failing to disclose he had been paid to endorse a bitcoin offering he was promoting on his social media channels

That promotion included posts on his social media accounts in which he encouraged the public not to ‘miss out’ on Bitcoiin2Gen’s initial coin offering. 

A press release was also issued in February 2018 that was titled ‘Zen Master Steven Seagal Has Become the Brand Ambassador of Bitcoiin2Gen’.

It included a quote from Seagal that said he endorsed the initial coin offering ‘wholeheartedly’. 

The promotions came six months after the SEC warned in 2017 that coins sold in initial offerings may be securities. 

The SEC has previously said that celebrities and others using social media to encourage people to buy stocks and other investments legally need to disclose details about compensation they receive for any endorsement. 

They also, in accordance with the anti-touting provisions of the federal securities laws, need to reveal the nature and scope of the compensation they receive in exchange for the promotion.   

The securities regulator said Seagal had agreed to give up $157,000 in ill-gotten gains and to pay another $157,000 as a penalty for failing to disclose the payments. 

The martial arts expert was promised $250,000 in cash and $750,000 worth of Bitcoiin2Gen tokens in exchange for his promotions

A press release was also issued in February 2018 that was titled 'Zen Master Steven Seagal Has Become the Brand Ambassador of Bitcoiin2Gen'. It included a quote from Seagal that said he endorsed the initial coin offering 'wholeheartedly'

A press release was also issued in February 2018 that was titled ‘Zen Master Steven Seagal Has Become the Brand Ambassador of Bitcoiin2Gen’. It included a quote from Seagal that said he endorsed the initial coin offering ‘wholeheartedly’

In addition to the fine, Seagal has agreed not to promote any securities for three years.

Seagal has not admit to any wrongdoing. 

‘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,’ said Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit. 

‘Celebrities are not allowed to use their social media influence to tout securities without appropriately disclosing their compensation.’ 

Seagal gained fame as an action-adventure film star in the 1980s. 

In 2018, he was embroiled in a sexual assault saga when two women came forward with allegations against the star.

The women accused Seagal of assaulting them in 2002 and 1995.

His lawyer said at the time that Seagal adamantly denied the allegations. 

The Los Angeles County District Attorney’s Office later declined to press charges because of the statute of limitations.

Read more at DailyMail.co.uk