As part of their scheme, DeMarr, and his co-conspirators accepted investments in Bitcoin, U.S. dollars, or Euros. They asked investors to deposit their funds for a specified contract period. They also falsely promised investors that they could withdraw their money at a significant profit.
The defendant and his co-conspirators also lied to investors that their funds would be invested in digital assets and trading platforms to earn huge profits. In reality, they never invested the investors’ funds. Instead, DeMarr and his co-conspirators moved the funds to accounts they controlled and used it for personal expenses such as purchasing a Porche, jewel and to remodel DeMarr’s home in California.
Additionally, DeMarr and his co-conspirators also paid celebrities including Steven Seagal to promote B2G and falsely claimed that it could generate an “8,000%” return to investors within a year. Seagal also claimed that he was a participant in the initial coin offering.
According to the Justice Department, DeMarr pleaded guilty to one count of conspiracy to commit securities fraud. He is facing a maximum sentence of five years in prison. He will be sentenced on January 4, 2022.
