US crypto promoter, John DeMarr, jailed 60 months over ‘Start Options’ fraud
A United States District Judge, LaShann Hall, has sentenced “Start Options” and “B2G” promoter, John DeMarr, to 60 months in prison for defrauding unsuspecting cryptocurrency investors.
According to a statement obtained by Ripples Nigeria on Wednesday, from the US Department of Justice, DeMarr lured investors with Start Options and B2G by paying promoters and falsely using the image and likeness of a celebrity to promote the cryptocurrency companies.
He pleaded guilty to one count of conspiracy to commit securities fraud in July 2021, but the case was only concluded on Tuesday. Following Judge Hall’s ruling, DeMarr was ordered to pay $3,513,305.41 in forfeiture.
Speaking on his sentence, US Attorney, Breon Peace, said “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.
“The victims ultimately lost everything, so it is appropriate that DeMarr lose his freedom for concocting this fraud,” the attorney added.
READ ALSO:Binance CEO, Changpeng Zhao, warns of cryptocurrency risk, as investors lose $1.11 trillion
Meanwhile, the IRS-CI Special Agent-in-Charge Hatcher, stated “Cryptocurrency schemes are on the rise. The Internal Revenue Service Criminal Investigation and our law enforcement partners are working diligently to identify and investigate criminals who perpetrate these schemes, like John DeMarr.”
Hatcher added, “DeMarr, a promoter of several digital asset-related companies, conspired with others to defraud victims and made misleading representations for significant profits.
“DeMarr diverted funds into accounts he controlled and spent the money to maintain a lavish lifestyle. Those who line their pockets with profits from these schemes should know they will not go undetected and will be held accountable.”
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