- Bitcoiin2Gen, a crypto company, was endorsed by Steven Segal.
- John DeMarr received 5 years in jail and a $3,513,305.41 fine.
A celebrity holds a certain persona that drives people towards them. People idolize them and love to buy the products and services owned by their favorite stars. This phenomenon has benefited the advertising industry and stars alike. But certain stars whose names and fame was used to sell dubious crypto projects have caused great losses to investors. Hence some of them are facing legal action.
58-year-old John DeMarr, a private detective-turned-cryptocurrency promoter accused of using 90s Hollywood action star Steven Segal to con investors for nearly $11 million, is sentenced to five years despite pleading guilty to his crimes. The verdict came out last week from a federal court in Brooklyn.
DeMarr conned people into investing in a company called Bitcoiin2Gen (B2Gen), a crypto trading platform. Millions of dollars were siphoned off from numerous accounts while California-based DeMarr used the ill gains to buy a Porsche, remodel his house and buy expensive jewelry.
Tyler Hatcher, IRS-Criminal investigation special Agent-in-charge, stated that:
“DeMarr, a promoter of several digital asset-related companies, conspired with others to defraud victims and made misleading representations for significant profits.”
The funds were diverted into accounts controlled by DeMArr, which were used to maintain a life of affluence. Further, all the co-conspirators of the act, who had this money in their pockets, should beware, as none will walk free. Everybody will be accounted for.
Segal was promised cash of $250,000 and B2Gen tokens for his endorsement deal. But sadly, he had to pay the SEC a fine of $314,000 in settlement for not disclosing that he took money for endorsing. United States District Judge LaShann DeArcy Hall sentenced DeMArr to 5 years and ordered him to pay $3,513,305.41 in forfeiture.
Breon Peace, a United States Attorney, said on the case that, DeMarr conned the people who trusted him; he showed them false hopes of doubling down their investment, despite knowing that his crypto company and the celebrity endorsement were all a sham. All he wanted was money to fund his lavish lifestyle. While the victims lost everything, it’s appropriate that he must also suffer and should not be allowed to walk free after a serious crime.
Jimmy Falon, Justin Bieber and Serena Williams are facing lawsuits for promoting Bored Ape Yacht Club. While after the FTX collapse, celebrities endorsing the now-bankrupt crypto exchange are also facing legal actions, the list includes names like Tom Brady, Gisele Bundchen, Madonna, Gwyneth Paltrow, and David Ortiz.
Kim Kardashian and Floyd Mayweather Jr. are also facing lawsuits; EthereumMax executives have lured innocent investors with big names to buy EMax tokens. The TV reality star also had to pay $1.26 million to the SEC to promote EthereumMAx.
People worship celebrities, and they tend to copy anything they do. Even if copying them causes serious problems or even death. Although they can not be directly held accountable if a man dies copying certain stunts in the movie. But they should be held accountable for what products or services or industry they endorse.
Naive people will buy anything their beloved star says. So if somehow there is a mechanism that holds them accountable for their influence, the product or services they endorse or promote. They might stop accepting such offers, and the image they hold can be used for the good of society, and they can be heroes in real life.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/02/13/11-m-crypto-scammer-gets-5-years-was-endorsed-by-steven-segal/