Bitcoiin Endorsed By Steven Seagal Issued Cease And Desist
ICO scams are doing everything in their power to get you to give them your money. Bitcoiin is using the endorsement of Steven Seagal to get you to invest. I doubt Steven Seagal is the person you want to turn to for cryptocurrency investment advice.
February 13, 2018, Hong Kong: Hollywood actor Steven Seagal has become a believer of Bitcoiin2Gen, the Hollywood action star will be representing the leading cryptocurrency organization, Bitcoiin2Gen, as brand ambassador. – Source bitcoiin2gen.pr.co
Bitcoiin has gained the attention of regulators. The New Jersey Bureau of Securities finds that there is good cause and it is in the public interest to enter this Summary Cease and Desist Order (“Order”) against Bitcoiin, a/k/a Bitcoiin B2G (collectively, “Bitcoiin”).
Here are the highlights of why they are issuing this Cease and Desist Order:
Seeking to capitalize on the popularity of the cryptocurrency Bitcoin (with one “i”), Bitcoiin offers its own cryptocurrency and other crypto-related investments through its website (www.bitcoiin.com), social media, and its purported official brand ambassador, actor Steven Seagal. Bitcoiin refers to its cryptocurrency as Bitcoiin 2’ Generation, Bitcoiin 2Gen, or B2G (collectively, “B2G”). Bitcoiin describes B2G as “the next generation of Bitcoin that will provide its own eco-system, its own wallet, its own mining machines and the ability to exchange the coin to popular alt coins or fiat currencies.” In actuality, Bitcoiin is fraudulently offering unregistered securities in violation of the Securities Law.
According to the Bitcoiin Websites, Bitcoiin is offering B2G to raise capital to build a self-sufficient crypto- “ecosystem,” where users will be able to trade B2G, provide wallet staking, and trade altcoins and fiat currencies, all “on a secure, comprehensive platform.”
Bitcoiin claims that to finance its “project,” Bitcoiin is conducting a crowd sale with a $75m (soft cap), and an ideal financing amount of $250 million (hardcap). The $250 million would purportedly allow Bitcoiin “. . .to implement the project quicker and also include a larger marketing manufacturing, technical development team.”
The Bitcoiin Websites compare cryptocurrency trading to trading stocks and tout that investors will be able to freely buy and sell B2G like an investor, or swap it like a trader.
Bitcoiin offers an investment it calls the “Bitcoiin Staking Program.”
The Bitcoiin Websites offer potential investors in New Jersey the opportunity to earn guaranteed interest of 1% per month or 12% per year by investing in the “Bitcoiin Staking Program.” According to the Bitcoiin Websites, to invest in the “Bitcoiin Staking Program,” an investor need only purchase B2G and hold it in their “in-ecosystem wallet,” which is accessible on the Bitcoiin Website. The interest that is generated for the investor is purportedly derived from Bitcoiin’s mining operation.
As part of Bitcoiin’s “recruiting program,” known as the “Referral Commission — Partner Program” (“Partner Program”), Bitcoiin uses agents to direct New Jersey residents to the Bitcoiin Websites for the purpose of purchasing the Bitcoiin investments.
Bitcoiin states that the purpose of the Partner Program is to reward “early depositors” (i.e. investors), who bring in new participants into B2G. These “early depositors” can earn a commission based upon their recruits’ revenues, which is based upon a percentage of earnings.
Bitcoiin further explains that:
- Level 1: 15% (personally-recruited affiliates)
- Level 2 : 10% (those personally-recruited affiliates’ recruits)
- Level 3 : 5% (recruits’ recruits’ recruits)
- Level 4: 2.5% (you get the idea)
In connection with the offer of securities in the Bitcoiin ICO and Bitcoiin Staking Program, Bitcoiin is omitting the following materials facts:
- the identity of its principals;
- the form of the entity;
- its physical address and its principal place of business;
- its assets and liabilities, or financial information about the business;
- the persons or entities that developed B2G, including the number of B2G coins owned by these persons or entities, and the amount of B2G owned by the principals of Bitcoiin;
- if Steven Seagal has any expertise to ensure that the investment is appropriate and in compliance with federal and state securities laws;
- the nature, scope, and amount of compensation received in exchange for Steven Seagal’s promotion of B2G;
- whether Steven Seagal owns any B2G;
- all of the risks associated with the Bitcoiin investments or their ecosystem; and
- that the Bitcoiin securities are not registered as required.
Untrue Statements of Material Facts in the Bicoiin ICO and the Staking Program
The Bitcoiin Website has the following disclaimer:
Buying Bitcoiin B2G carries no promise of any return, profit or gain derived from the work of others, including without limitation managerial services, mining, holding or trading any asset. Your deposit of money, in whatever form or currency, is made in exchange for a number of Bitcoiin B2G tokens, i.e., personal property, the value of which is determined by market rates of exchange, and no other factors. Tokens so purchased may increase or decrease in value over time. No contract, offer, or promise is made by Bitcoiin B2G of any particular result, gain, profit or return. You are buying Bitcoiins, NOT investing in a common enterprise. Celebrity spokesman holds no ownership interest in Bitcoiin B2G.
This disclaimer is materially misleading because it directly contradicts the Bitcoiin Websites that promise profits and returns. The disclaimer further provides no basis for the conclusion that the investments in the Bitcoiin ICO and Bitcoiin Staking Program are not derived from the works of others or are not a common enterprise.
– Source nj.gov
One of the things I have been noticing in many of these ICO scams is that they are using “affiliate” programs that are actually MLM recruiting scams. They use the MLM recruiting scam to exponentially grow the size of the victims taken advantage of by the scam. Any “affiliate” program that is actually MLM should be a red flag for you in any money making program.