Steven Seagal may have relocated to Russia, but the US Securities and Exchange Commission is still on the hunt for the Above the Law star after winning a judgment against him.
The situation serves as a reminder to crypto marketers — or anyone paid in a digital currency — to report crypto earnings accurately.
ICO Promotional Work Leads to SEC Fine
The conflict stems from Seagal’s promotional work for Bitcoiin2Gen, the beleaguered blockchain project that made headlines in 2018 for allegedly scamming investors. Bitcoiin2Gen paid Seagal $750,000 in crypto and $250,000 in cash for promoting its ICO on social media.
But problems arose when Seagal allegedly failed to disclose that he was being paid to promote the token. The SEC went after him — as they did Floyd Mayweather Jr. and DJ Khaled, who were slapped with the same offense.
Ultimately, a Brooklyn federal judge said the SEC could collect over $200,000 from Seagal’s business manager for failing to disclose funds he received for promoting a cryptocurrency. In the end, the SEC and Seagal hammered out a settlement. He didn’t have to admit fault or wrongdoing, but did have to pony up a hefty fine.
Moved to Russia Without Paying Crypto Fine
After submitting $75,000, Seagal supposedly stopped paying. So now the SEC is hunting down its ducats. But there’s a hurdle: Seagal moved to Moscow a few years ago after Vladimir Putin granted him Russian citizenship through a presidential decree.
When authorities directed Seagal or a representative to appear in court to respond to the SEC’s motion, neither showed. As a result, the court permitted the SEC to go after the actor’s stateside business manager.
The Takeaway
So what should you take away from Seagal’s crypto-related legal troubles? Firstly, if you don’t want to the IRS, SEC, or a state financial agency on your back, make sure you remain compliant with all the applicable regulations and laws. Moreover, if you plan to move offshore, understand that doing so won’t keep authorities from tracking you down. So settle your finances before leaving.
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