StarOptions and B2G promoter gets 60 months in prison
On Tuesday, federal court in Brooklyn sentenced John DeMarr to 60 months in prison for his role in a multimillion-dollar cryptocurrency and securities fraud scheme. The sentencing came after DeMarr pleaded guilty to one count of conspiracy to commit securities fraud in July 2021.
The court also ordered DeMarr to pay more than $3.5 million in forfeiture in addition to the jail sentence.
According to court documents, DeMarr was a promoter of several companies related to digital assets. He conspired with others to defraud investors by luring them into their businesses, Start Options and B2G, with false and misleading representations.
They promoted Star Options as an online investment platform that provides cryptocurrency digital asset mining, trading and trading services. At the same time, B2G was touted as an “ecosystem” allowing users to trade B2G tokens, offer staking
Staking
Staking is defined as the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. In particular, staking represents an offer to secure a volume of crypto to receive rewards. In most cases, however, this process relies on users participating in blockchain-related activities through a personal crypto wallet. The concept of staking is also closely related to proof of stake (PoS). PoS is a type of consensus algorithm in which a blockchain network aims to achieve
Staking is defined as the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. In particular, staking represents an offer to secure a volume of crypto to receive rewards. In most cases, however, this process relies on users participating in blockchain-related activities through a personal crypto wallet. The concept of staking is also closely related to proof of stake (PoS). PoS is a type of consensus algorithm in which a blockchain network aims to achieve
Read this term, and exchange digital and fiat currencies. Both of these platforms were fraudulent, the US Department of Justice pointed out.
Another scheme too good to be true
DeMarr and his co-conspirators falsely claimed that investors’ funds would be invested in digital asset mining and trading platforms, generating huge profits. They even paid for celebrity endorsements. An unnamed actor famous for his martial arts films made in the 1980s and 1990s even became a famous promoter and spokesperson for the program and falsely claimed that B2G could generate an 8000% return in one year. The authors also used other celebrity endorsements to promote boot options.
However, in reality, none of the investors’ funds were invested. Instead, the perpetrators diverted the funds to their own accounts and used them for personal expenses and the purchase of luxury items, including cars and jewelry.
“DeMarr took advantage of those who trusted him, persuading them to double down on their investments when he knew his cryptocurrency companies and their dodgy celebrity endorsements were scams used to fund his lavish lifestyle,” said Breon Peace, US Attorney for the East. Neighborhood of New York.
“The victims ultimately lost everything, so it’s only fitting that DeMarr should lose his freedom for concocting this fraud.”
Check out the latest FMLS22 session on “Digital Asset Marketing Under a Magnifying Glass”.
The Rise of Crypto Scams
The growing popularity of cryptocurrencies
Cryptocurrencies
Using cryptography, virtual currencies, known as cryptocurrencies, are nearly unforgeable digital currencies that are based on blockchain technology. Composed of decentralized networks, blockchain technology is not overseen by a central authority. Therefore, cryptocurrencies operate in a decentralized manner, which theoretically makes them immune to government interference. The term cryptocurrency derives from the origin of the encryption techniques used to secure the network.
Using cryptography, virtual currencies, known as cryptocurrencies, are nearly unforgeable digital currencies that are based on blockchain technology. Composed of decentralized networks, blockchain technology is not overseen by a central authority. Therefore, cryptocurrencies operate in a decentralized manner, which theoretically makes them immune to government interference. The term cryptocurrency derives from the origin of the encryption techniques used to secure the network.
Read this term also encouraged fraudsters to redouble their efforts to defraud investors. The number of fraudulent tokens has grown exponentially over the years. According to a report from Solidus Labs, 125,084 fraudulent tokens were deployed last year, compared to just 83,368 the previous year.
Additionally, UK police data revealed that cryptocurrency fraud in the country jumped 32% between October 2021 and September 2022 to reach £226 million. Meanwhile, the UK court recently sent four people to jail for 15 years for their role in the loss of £21 million to an Australian cryptocurrency exchange.
On Tuesday, federal court in Brooklyn sentenced John DeMarr to 60 months in prison for his role in a multimillion-dollar cryptocurrency and securities fraud scheme. The sentencing came after DeMarr pleaded guilty to one count of conspiracy to commit securities fraud in July 2021.
The court also ordered DeMarr to pay more than $3.5 million in forfeiture in addition to the jail sentence.
According to court documents, DeMarr was a promoter of several companies related to digital assets. He conspired with others to defraud investors by luring them into their businesses, Start Options and B2G, with false and misleading representations.
They promoted Star Options as an online investment platform that provides cryptocurrency digital asset mining, trading and trading services. At the same time, B2G was touted as an “ecosystem” allowing users to trade B2G tokens, offer staking
Staking
Staking is defined as the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. In particular, staking represents an offer to secure a volume of crypto to receive rewards. In most cases, however, this process relies on users participating in blockchain-related activities through a personal crypto wallet. The concept of staking is also closely related to proof of stake (PoS). PoS is a type of consensus algorithm in which a blockchain network aims to achieve
Staking is defined as the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. In particular, staking represents an offer to secure a volume of crypto to receive rewards. In most cases, however, this process relies on users participating in blockchain-related activities through a personal crypto wallet. The concept of staking is also closely related to proof of stake (PoS). PoS is a type of consensus algorithm in which a blockchain network aims to achieve
Read this term, and exchange digital and fiat currencies. Both of these platforms were fraudulent, the US Department of Justice pointed out.
Another scheme too good to be true
DeMarr and his co-conspirators falsely claimed that investors’ funds would be invested in digital asset mining and trading platforms, generating huge profits. They even paid for celebrity endorsements. An unnamed actor famous for his martial arts films made in the 1980s and 1990s even became a famous promoter and spokesperson for the program and falsely claimed that B2G could generate an 8000% return in one year. The authors also used other celebrity endorsements to promote boot options.
However, in reality, none of the investors’ funds were invested. Instead, the perpetrators diverted the funds to their own accounts and used them for personal expenses and the purchase of luxury items, including cars and jewelry.
“DeMarr took advantage of those who trusted him, persuading them to double down on their investments when he knew his cryptocurrency companies and their dodgy celebrity endorsements were scams used to fund his lavish lifestyle,” said Breon Peace, US Attorney for the East. Neighborhood of New York.
“The victims ultimately lost everything, so it’s only fitting that DeMarr should lose his freedom for concocting this fraud.”
Check out the latest FMLS22 session on “Digital Asset Marketing Under a Magnifying Glass”.
The Rise of Crypto Scams
The growing popularity of cryptocurrencies
Cryptocurrencies
Using cryptography, virtual currencies, known as cryptocurrencies, are nearly unforgeable digital currencies that are based on blockchain technology. Composed of decentralized networks, blockchain technology is not overseen by a central authority. Therefore, cryptocurrencies operate in a decentralized manner, which theoretically makes them immune to government interference. The term cryptocurrency derives from the origin of the encryption techniques used to secure the network.
Using cryptography, virtual currencies, known as cryptocurrencies, are nearly unforgeable digital currencies that are based on blockchain technology. Composed of decentralized networks, blockchain technology is not overseen by a central authority. Therefore, cryptocurrencies operate in a decentralized manner, which theoretically makes them immune to government interference. The term cryptocurrency derives from the origin of the encryption techniques used to secure the network.
Read this term also encouraged fraudsters to redouble their efforts to defraud investors. The number of fraudulent tokens has grown exponentially over the years. According to a report from Solidus Labs, 125,084 fraudulent tokens were deployed last year, compared to just 83,368 the previous year.
Additionally, UK police data revealed that cryptocurrency fraud in the country jumped 32% between October 2021 and September 2022 to reach £226 million. Meanwhile, the UK court recently sent four people to jail for 15 years for their role in the loss of £21 million to an Australian cryptocurrency exchange.
StarOptions and B2G promoter gets 60 months in prison
