Seagal promoted the B2G ICO six months after the SEC released its 2017 DAO Report warning that digital coins sold in ICOs are considered securities. The Commission also advised any celebrity or individual who promotes a digital coin or token to disclose the nature, scope, and amount of compensation received in exchange for their promotion.
To resolve the allegations against him, Seagal agreed to pay a total of $330,448 monetary judgment including $157,000 in disgorgement plus $16,448 prejudgment interest and a $157,000 penalty. The actor also agreed that he will not promote any securities or digital assets for three years.
In a statement, SEC Enforcement Division, Cyber Unit Chief Kristina Littman said, “Celebrities are not allowed to use their social media influence to tout securities without appropriately disclosing their compensation.” She added that Seagal has the responsibility to inform investors about the payments he received for endorsing the investment. The actor’s disclosure is important for investors to decide whether he may be biased in promoting the B2G ICO.
