Steven Seagal crypto scheme scams investors out of $11 million

A Cryptocurrency scheme, promoted by 80s action-movie icon Steven Seagal,  scammed investors out of $11 million. The scheme was run by Kristijan Krstic, who reportedly has a history of pulling such scams. Krstic scammed the money from nearly 500 investors, pulling in a mix of cash and established cryptocurrencies.

As originally reported by Market Watch, Krstic and his team promised investors a return of up to 200% within 60 to 90 days. This, of course, never happened, and after a few months, investors were asking where their money went. It was at this point that Krstic and his team of scammers offered investors a new cryptocurrency called Bitcoiin2Gen.

Steven Seagal

John DeMarr, a 55-year-old private detective served as the face of the scam and enlisted Steven Seagal as a promoter. DeMarr paid Seagal $250,000 cash and up to $750,000 in B2G currency for his time.

A press release announcing the partnership read: “Zen Master Steven Seagal Has Become the Brand Ambassador of Bitcoiin2Gen". Seagal however, did not disclose his payment for promoting the scheme. U.S. Securities and Exchange Commission fined Seagal $300,000 for his involvement. 

Steven Seagal’s manager called the experience “bad luck and timing for Steven”. The scammers conned Seagal "like everyone else.” Seagal has not publicly commented on the case. The actor promoted the scheme to nearly 7 million followers online, saying that he “wholeheartedly” endorsed the scheme. 

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Jail time 

DeMarr received over $2 million from the scam. He could face up to five years in prison when he is sentenced at the start of 2022. The former private detective pleaded guilty to the charges brought forward by the government. 

Krstic left the company alongside Steven Seagall in March 2018. The person behind the scam reportedly made off with $7 million, although according to reports, he is in custody in Serbia with local law enforcement.

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