A CRYPTO scam which branded itself as the next Bitcoin cost investors some $11million – with the con even roping in action star Steven Seagal.
Under Siege and Half Past Dead hardman Seagal was paid to promote "Bitcoiin2Gen" (B2G) which saw 500 investors left out of pocket in cash and other cryptocurrencies as he unwittingly ended up backing the scam.
Seagal reportedly had been offered $250,000 along with £750,000 worth of B2G for appearing in promotional materials for the con artists.
He appeared in a press release for them and "wholeheartedly" endorsed the scheme in a post to his 7million followers on Facebook.
"For Bitcoiin2Gen, the choice of Zen Master, Steven Seagal is obvious as brand ambassador, this extends our long-term commitment towards the community," the press release read.
His management however have said he was "conned like everyone else" and it was just "bad luck and timing for Steven", reports MarketWatch.
And Seagal's team previously said the actor backed away when he started having doubts abotu the "bona fides" of the product and "terminated the relationship", report CNBC.
Seagal also reportedly was only paid part of his $250k fee – and he cut ties with the company in 2018.
The US Securities and Exchange Commission (SEC) announced in 2020 they had settled with the action star for around $300,000 in costs and penalties – but the case against the people behind B2G continues.
Millions of dollars remain missing as the crypto fraud's alleged mastermind Kristijan Krstic – also known as Felix Logan – was reportedly recently released from prison in his native Serbia.
SEC officials describe him as the "founder and controller" of B2G.
He had been facing extradition to the US – but local reports suggest him and eight of his alleged accomplices were freed at the end of July.
Kristic is alleged to have been the creator of B2G – but he is also linked to more than a dozen other trading platforms which may have fraudulently scooped cash of up to $70million.
The inspiration of Bitcoiin2Gen is to make a superior or more advanced version of Original Bitcoin
Investors were tricked by a slick operation which included fake staff – mostly female- mocked up with names and photographs, and fake names during video conferences.
Customers were given logins to an investment portal that would always show fake returns and included a fabricated paper trail of investments, withdrawals and receipts.
The scheme promised investors could “purchase bitcoin at half market price!!” due to a “24-7 mining” at facilities “worldwide", according to the US Department of Justice.
And they promised huge gains of up to 200 per cent with three months to try and lure in unwitting investors, and described B2G as a "self-sustaining cryptocurrency".
"The inspiration of Bitcoiin2Gen is to make a superior or more advanced version of Original Bitcoin", the firm boasted.
California private investor John DeMarr last week pleaded guilty for his part in the scam – pocketing some $2million – and he faces 5 years in prison.
He acted as one of B2G's frontmen and used his gains to buy a Porsche, a BMW, pay off $1million and renovate his home in Seal Beach.
US officials believe Krstic's whereabouts remains unknown – but he was pictured in Serbian media last month being reunited with his family after being freed from prison.
He is accused of running Ponzi schemes across the world – and DeMarr claims he only knew him as "Felix Logan" for the first year of their relationship.
ELABORATE CON
Investors were told their money was being spent on giant crypto farms in China – and then they were told it was being rolled over into B2G, with the promise of their money being doubled free of charges.
Starting to get suspicious as they were left unable to access their money, DeMarr then started promising investors they would get returns of 8,000 per cent, before then saying the firm had been taken over by a Russian firm.
He then told investors he was travelling to Montenegro to sell on the B2G coins so everyone could get their money back.
The company then claimed he was assaulted in disappeared – but in reality he was held up at his home in California.
He was indicted in February and now faces up to five years in prison.
Krstic however continues to seemingly evade justice – as do his alleged accomplices despite efforts by prosecutors.
The total missing funds is currently around $4million.
Suspected scammer Antonije Stojilkovic was reportedly extradited in February over the wider $70million network of scams.
He allegedly helped create and market fake investing platforms, including Options Rider, Bancde Options, Start Options, Dragon Mining, BTC Mining Factor, and Trinity Mining.
B2G and its associated networks are just some of the scams and cons looking to lure in new investors to the volatile world of cryptocurrency – with the US seeing more than 80,000 frauds in 2020.
The Sun Online previously revealed the tale of the infamous "CryptoQueen" who fled with an estimated $13billion in Bitcoin.
Meanwhile, we told the tale of Gerald Cotten, a trader who died taking with him the passwords to a $215million fortune – sparking rumours he faked his own death.
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