US regulators are forcing former action star Steven Seagal to pay up for failing to disclose payment related to endorsing a cryptocurrency back in 2018.
The martial artist and actor has been in a legal headlock with the Securities and Exchange Commission for failing to disclose a $1 million payment he was promised for endorsing Bitcoiin2Gen. On Thursday, Seagal decided to tap out and settle the charges.
Two years ago, Seagal was named the official brand ambassador for the cryptocurrency, which sought to replace Bitcoin. He then used his social media accounts to encourage the public to invest in the company’s initial coin offering, despite claims it sounded like a pyramid scheme.
In the endorsements, Seagal neglected to mention he was promised $250,000 in cash for the endorsement, along with $750,000 in Bitcoiin2Gen tokens, according to SEC. "These investors were entitled to know about payments Seagal received or was promised to endorse this investment so they could decide whether he may be biased," Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit, said in today’s announcement.
Specifically, the SEC says the endorsement violated the “anti-touting provisions of the federal securities laws.” In 2017, the agency also warned celebrities to disclose any financial ties to initial coin offerings or face potential penalties.
As part of today's settlement, Seagal has agreed to pay $314,000. He’s also been barred from promoting any securities, including digital ones, for the next three years.
In 2018, the SEC also settled charges with two other celebrities—professional boxer Floyd Mayweather Jr. and music producer DJ Khaled—for failing to disclose payments they received to promote initial coin offerings from Centra Tech.
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