FRIDAY, March 29, 2024
nationthailand

Actor Steven Seagal fined by SEC for touting token offering

Actor Steven Seagal fined by SEC for touting token offering

Hollywood actor Steven Seagal became the latest celebrity punished for failing to disclose that he was being paid to promote a digital coin as part of U.S. regulators' ongoing crackdown on token offerings.

Seagal, a 67-year-old action star who appeared in films such as "Under Siege" and "Above the Law," was promised $250,000 in cash and $750,000 worth of tokens for touting an initial coin offering from a company called Bitcoiin2Gen, the Securities and Exchange Commission said in a Thursday statement. In social media posts, Seagal urged fans not to miss out on the token offering. A press release also identified him as Bitcoiin2Gen's brand ambassador.

He agreed to settle the SEC's allegations without admitting or denying wrongdoing, and will pay a $157,000 fine and the same amount in disgorgement, the regulator said.

Celebrity endorsements of ICOs -- in which companies raise money by selling digital tokens instead of shares -- became increasingly common as bitcoin surged to a record high in 2017. All the hype prompted the SEC to publicly warn that pitches could be unlawful if the famous backers' compensation wasn't disclosed.

In 2018, the SEC accused boxer Floyd Mayweather and music producer DJ Khaled of failing to disclose that they had received payments for hyping ICOs. Mayweather, one of his sport's most recognizable personalities, agreed to pay more than $600,000 to settle with the regulator, while DJ Khaled agreed to pay more than $150,000.s

RELATED
nationthailand