SEC charges 'Bitcoiin' execs with defrauding investors out of $11 million

The Securities and Exchange Commission (SEC) has  charged three people involved with the cryptocurrency investment scheme Bitcoiin2Gen (B2G) with securities fraud. 

B2G allegedly promised investors a profit from holding the firm's cryptocurrency, Bitcoiin, which was sold in what the SEC has deemed to be an unregistered initial coin offering (ICO). The regulator says the $11 million made throughout the Bitcoiin project as well as another called Start Options constitutes two fraudulent and unregistered securities offerings. Founder Kristijan Krstic, promoter John DeMarr and Robin Enos fraudulently induced investors, according to the SEC. 

Krstic and DeMarr face charges of violating the antifraud and registration portions of securities laws, while Enos has been charged with aiding and abetting the actions. The U.S. Attorney's Office for the Eastern District of New York and the Department of Justice are also bringing criminal charges against DeMarr.

The SEC settled with film actor Steven Seagal early last year over charges related to B2G. Seagall was a notable promoter of Bitcoiin. In that case, the SEC said it viewed B2G as a security and its investigation into B2G was still ongoing. 

B2G is currently priced at $0.000841 with no discernible trade volume in the past 24 hours, according to CoinMarketCap.