Stephen Segal was fined by the U.S. Securities and Exchange Commission (SEC) in the amount of $314 thousand, which the agency reported on its official website. The reason for the sanctions was the actor's participation in the promotion of ICO token Bitcoiin2Gen (B2G) in early 2018.
Segal did not report that the cryptoproject promised him $250,000 in cash and $750,000 in B2G coins, SEC representative Christina Littman explained. According to her, according to the provisions of the securities law, any celebrity advertising tokens must disclose the nature and amount of promotion fees.
"Investors had the right to know about the reward Segal received or could receive for his advertising so they could decide for themselves whether an actor could be biased ... celebrities are not allowed to use their influence on social media to advertise securities without proper disclosure of compensation," Littman said.
She added that Segal has agreed to pay the fine. The actor also pledged not to advertise any other projects or crypto assets for 3 years.
Currently, the B2G token is traded at $0.000177, which is 99.2% below the price during the ICO. Daily trading volume of the altokoy was $54.
Last October, the SEC fined the EOS project $24 million for unregistered ICO. The developer of Block.one agreed to pay a fine, which is less than 1% of the $4.1 billion raised during the initial token placement.
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