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 cryptocurrency companies. .

He pleaded guilty to one count of conspiracy to commit securities fraud in July 2021, but the case was not concluded until Tuesday. Following Judge Hall’s ruling, DeMarr was ordered to pay $3,513,305.41 in forfeiture.

Speaking about his sentencing, US Attorney Breon Peace said that “DeMarr took advantage of those who trusted him, persuading them to double down on their investments when he knew his cryptocurrency companies and dubious celebrity endorsements were scams being used to finance his luxurious lifestyle.

“The victims ultimately lost everything, so it’s only fitting that DeMarr lose his freedom for concocting this fraud,” the attorney added.

ALSO READ: Binance CEO Changpeng Zhao Warns of Crypto Risk as Investors Lose $1.11 Trillion

Meanwhile, 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 perpetrating these schemes, such as John DeMarr.”

Hatcher added: “DeMarr, a promoter of several companies related to digital assets, conspired with others to defraud victims and made misleading statements for significant gains.

“DeMarr siphoned funds into accounts he controlled and spent the money to maintain a lavish lifestyle. Those who line their pockets with the profits from these schemes should know that they will not go unnoticed and will be held to account.”

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