April 7, 2020

April 06, 2020

Subscribe to Latest Legal News and Analysis

April 05, 2020

Subscribe to Latest Legal News and Analysis

Steven Seagal is not “Above the Law” in Crypto Scalping Case

Hollywood martial arts sensei Steven Seagal was recently karate-chopped by the SEC for his alleged undisclosed payments for Twitter-touting a security that was being offered and sold in an initial coin offering.  In a settled cease-and-desist order, the Moscow-based B movie actor consented to a violation of Section 17(b) of the Securities Act of 1933, which prohibits the promotion of a security without fully disclosing the receipt and amount of compensation for such promotion.  The SEC found that that Seagal was kung fu fighting on behalf of something called Bitcoiin2Gen in the promotion of investment contracts to be issued on the Ethereum blockchain.  The operator of the dojo with no mojo agreed to repay $314,000 to settle the charges involved in the practice commonly known as scalping.

© 2020 Winstead PC.

TRENDING LEGAL ANALYSIS


About this Author

Toby M. Galloway Securities Litigation & Enforcement Attorney Winstead Law Firm Fort Worth Texas
Shareholder

Toby Galloway is Co-Chair of Winstead's Securities Litigation & Enforcement Practice Group. He also practices in the areas of white-collar defense, governmental & internal investigations, and business litigation. Before developing his private practice, he served as an attorney with the United States Securities and Exchange Commission, in roles of increasing responsibility, for more than 11 years.

During his last four years at the SEC, Toby was the chief trial counsel for the Commission’s Fort Worth Regional Office. In this capacity, he...

817.420.8262