The Security and Exchange Commission, SEC has filed charges against three players in the Bitcoiin2Gen (B2G) cryptocurrency investment scheme for allegedly engaging in securities fraud.

The SEC filed the charges on Monday, stating that Bitcoin2Gen was used to defraud investors of $11 million through two ‘fraudulent and unregistered ‘digital asset securities offerings – Start options and Bitcoin2Gen.

The lawsuit alleged that the founder of B2G Kristijan Krstic and the promoter John Demarr deceived investors into buying the token in 2018

The SEC also claimed that another man, Robin Enos helped Demarr to draft the fraudulent promotional materials that were used to promote the B2G tokens to investors.

The lawsuit stated that the claims that B2G would be deliverables on the Ethereum blockchain, the investment would be used to develop ‘mineable’ coins and that the tokens would be tradeable on digital asset trading platform during the promotions were all false.

The current price of bitcoin is $37,736.26, climbing up by 1.15% in the last 24 hours. Bitcoin has a current market cap of $646.67B and market volume of $49.96B. In the last 24 hours, bitcoin has dropped to $33,150.73 and experienced a $35,645.87 high.  Currently, 18,617,131.25 bitcoins are in circulation.

Stats and Image from Coin Desk

Krstic and Demarr were charged by the SEC with violating the antifraud and registration provisions of the federal securities law, while Enos was charged with aiding and abetting the antifraud violation.

The Chief of the SEC Enforcement Division’s Cyber Unit, Kristina Littman said, “the conduct alleged in this action was a blatant attempt to victimize those interested in digital asset technology and these defendants should be held accountable.”