Both schemes were fraudulent and received millions from investors.
B2G even promised an 8,000 percent annual return from its ICO.
On Tuesday, the federal court in Brooklyn sentenced John DeMarr to 60 months in prison for his role in a multi-million dollar cryptocurrency and securities fraud scheme. The sentencing came after DeMarr pled guilty to one count of conspiracy to commit securities fraud in July 2021.
Additionally, the court ordered DeMarr to pay more than $3.5 million in damages along with the prison sentence.
StarOptions and B2G Promoter Gets 60 Months in Jail
According to the court documents, DeMarr was a promoter of several digital asset-related companies. He conspired with others to defraud investors by luring them to their companies, Start Options and B2G, with false and misleading representations.
DeMarr and his co-conspirators falsely claimed that the investors' funds would be invested in digital asset mining and trading platforms, earning massive profits. They even paid for celebrity endorsements. One unnamed actor famous for martial arts films made in the 1980s and 1990s even became a promoter and celebrity spokesperson of the scheme and falsely claimed that B2G could generate an 8,000 percent return in one year. Further, the perpetrators used other celebrity endorsements to promote Start Options.
However, in reality, none of the investor funds was invested. Instead, the perpetrators diverted the funds into their own accounts and used them for personal expenses and purchasing luxury items, including cars and jewellery.
"DeMarr took advantage of those who trusted him, persuading them to double down on their investments when he knew that his cryptocurrency companies and their dubious celebrity endorsements were scams being used to fund his lavish lifestyle," said Breon Peace, US Attorney for the Eastern District of New York.
"The victims ultimately lost everything, so it is appropriate that DeMarr lose his freedom for concocting this fraud."
Check out the latest FMLS22 session on "Digital Assets’ Marketing Under A Magnifying Glass."
Further, data from the UK police revealed that cryptocurrency frauds in the country jumped by 32 percent between October 2021 and September 2022 to £226 million. Meanwhile, the UK court recently sent four individuals to prison for 15 years for their role in causing a loss of £21 million to an Australian cryptocurrency exchange.
On Tuesday, the federal court in Brooklyn sentenced John DeMarr to 60 months in prison for his role in a multi-million dollar cryptocurrency and securities fraud scheme. The sentencing came after DeMarr pled guilty to one count of conspiracy to commit securities fraud in July 2021.
Additionally, the court ordered DeMarr to pay more than $3.5 million in damages along with the prison sentence.
StarOptions and B2G Promoter Gets 60 Months in Jail
According to the court documents, DeMarr was a promoter of several digital asset-related companies. He conspired with others to defraud investors by luring them to their companies, Start Options and B2G, with false and misleading representations.
DeMarr and his co-conspirators falsely claimed that the investors' funds would be invested in digital asset mining and trading platforms, earning massive profits. They even paid for celebrity endorsements. One unnamed actor famous for martial arts films made in the 1980s and 1990s even became a promoter and celebrity spokesperson of the scheme and falsely claimed that B2G could generate an 8,000 percent return in one year. Further, the perpetrators used other celebrity endorsements to promote Start Options.
However, in reality, none of the investor funds was invested. Instead, the perpetrators diverted the funds into their own accounts and used them for personal expenses and purchasing luxury items, including cars and jewellery.
"DeMarr took advantage of those who trusted him, persuading them to double down on their investments when he knew that his cryptocurrency companies and their dubious celebrity endorsements were scams being used to fund his lavish lifestyle," said Breon Peace, US Attorney for the Eastern District of New York.
"The victims ultimately lost everything, so it is appropriate that DeMarr lose his freedom for concocting this fraud."
Check out the latest FMLS22 session on "Digital Assets’ Marketing Under A Magnifying Glass."
Further, data from the UK police revealed that cryptocurrency frauds in the country jumped by 32 percent between October 2021 and September 2022 to £226 million. Meanwhile, the UK court recently sent four individuals to prison for 15 years for their role in causing a loss of £21 million to an Australian cryptocurrency exchange.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24