And in 2020, the action star has been fined with $300 thousand by the United States Securities and Exchange Commission. Find out why?
Steven Seagal Involvement With Cryptocurrency: How Did It Start?
Back in early 2018, Seagal was all over the internet for endorsing Bitcoiin2Gen. He promoted the new generation cryptocurrency, Bitcoiin2Gen, and it's initial coin offering through his social and news media especially, Twitter.
Moreover, he even conducted a press release, "Zen Master Steven Seagal Has Become the Brand Ambassador of Bitcoiin2Gen," stating investors not to miss out on the offerings. Indeed, the endorsement deal with the company paid his well.
Unfortunately, Above the law star was unable to disclose that he was being paid for promoting the cryptocurrency investment to The United States Securities and Exchange Commission.
As per SEC, Steven Seagal failed to disclose he was promised $750 thousand worth B2G tokens and $250 thousand cash in exchange for his promotions of cryptocurrency system, Bitcoiin2Gen.
Chief of the SEC Enforcement Division's Cyber Unit, Kristina Littman said: 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.
In addition, Littman commented:
Celebrities are not allowed to use their social media influence to tout securities without appropriately disclosing their compensation.
SEC further added Anyone who promotes a digital token must disclose any compensation received for their efforts.
Fined With More Than $300 Thousand Bills
After press releases and meetings, Under Siege actor agreed to pay back $314 thousand; $157 thousand payment plus $157 thousand fine as prejudgement interest. He paid a hefty sum $314 thousand without even denying or admitting SEC's allegations.
Additionally, Seagal has also agreed not to promote any securities and cryptocurrency system for a period of three years on his social media platform.
Some Other Celebrities Who Have Been Charged For Unlawfully Touting ICOs By The SEC
- Floyd Mayweather Jr. paid $600 thousand: $300 thousand payment plus $300 thousand penalties and $14 thousand prejudgement interest.
- DJ Khaled was fined $100 thousand for promoting Centra Tech ICO, although he only received $50 thousand payment. He also gave $2.7 thousand in prejudgement interest.