https://threatpost.com/crypto-crook-steven-segal-scam/163612/ Newsletter Subscribe to our Threatpost Today newsletter Join thousands of people who receive the latest breaking cybersecurity news every day. The administrator of your personal data will be Threatpost, Inc., 500 Unicorn Park, Woburn, MA 01801. Detailed information on the processing of personal data can be found in the privacy policy. In addition, you will find them in the message confirming the subscription to the newsletter. * [ ] * * [ ] * * * + [ ] I agree to my personal data being stored and used to receive the newsletter * * + [ ] I agree to accept information and occasional commercial offers from Threatpost partners * Comments [ ] This field is for validation purposes and should be left unchanged. [Subscribe] This iframe contains the logic required to handle Ajax powered Gravity Forms. The administrator of your personal data will be Threatpost, Inc., 500 Unicorn Park, Woburn, MA 01801. Detailed information on the processing of personal data can be found in the privacy policy. In addition, you will find them in the message confirming the subscription to the newsletter. Threatpost * Cloud Security * Malware * Vulnerabilities * InfoSec Insiders * Podcasts * * * * * * * [ ] Search * Tiny Kobalos Malware Bedevils Supercomputers to Steal Logins Previous article * TrickBot Continues Resurgence with Port-Scanning ModuleNext article Crypto Crook Hired Steven Seagal to Promote Scam, Now Faces Charges [Becky-B] Author: Becky Bracken February 2, 2021 1:17 pm minute read Write a comment Share this article: * * [bitcoin-70] Feds charged California-based private detective for stealing $11M from investors, with help from actor Steven Seagal. Hundreds of investors in a fake cryptocurrency scam were bilked out of $11 million by John DeMarr, who advised them to invest in fake cryptocurrency "Bitcoiin," took their money and spent it on a Porsche, jewelry and upgrades to his home, a criminal complaint from the Department of Justice alleges. Actor Steven Seagal was hired to promote the company, also known as "Bitcoiin2Gen" or "B2G," and was ordered last year by the Securities and Exchange Commission to pay a $157,000 penalty, without admitting to any crimes. DeMarr, on the other hand, made his first appearance in court on Feb. 1 to face one charge of conspiracy to commit securities fraud. Porsche, Jewels, Home Upgrades & Faked Kidnapping DeMarr is alleged to have promised victims 8,000-percent returns on their investment within the first year, the complaint said, and generated fake press releases, white papers and account statements to keep the scam going. When investors finally came looking for their money, DeMarr reportedly faked his own disappearance, asking others to lie and say he was assaulted and kidnapped in Montenegro. "Mr. DeMarr created an elaborate cryptocurrency scheme, complete with high-profile endorsements and incredibly large returns that proved to be a mirage costing investors millions," assistant director in charge Kristi K. Johnson of the FBI's Los Angeles Field Office said. "Mr. DeMarr is now in custody and no longer spending his victims' money, nor hiding from justice by faking his own disappearance." [steven-segal] Steven Seagal, actor and cryptocurrency spokesperson. The FBI said this prosecution should serve as a warning to other would-be crypto-crooks. "In today's high-tech financial world there are increasingly more opportunities for fraudsters to take advantage of people and their bank accounts," said special agent in charge Ryan Korner of the IRS-Criminal Investigation (IRS-CI) Los Angeles Field Office said. "Claiming to be part of a cryptocurrency 'ecosystem,' DeMarr created nothing more than an elaborate fraud scheme where he stole his investors' money to fund his own personal lifestyle, resulting in losses totaling over $11 million. Financial crimes never pay, as one way or another the person behind the computer will be caught and will be held accountable." Crypto-Fraud Down Overall The cryptocurrency market has proven to be rife with fraud, but increased attention on security and enforcement is working, according to a brand-new report from CipherTrace, which found losses from cryptocurrency theft and fraud fell a substantial 57 percent last year. "Thefts from hacks against centralized exchanges continue to decrease as these financial institutions mature and adopt stronger security measures," Dave Jevans, CipherTrace's chief executive officer, said in an interview with Reuters. One of the most high-profile cryptocurrency scams came last summer when some of Twitter's most-followed, high-profile accounts belonging to the likes of Bill Gates and Elon Musk we hijacked to promote a cryptocurrency scam promising to double the value of the Bitcoin sent to a specific wallet. And just last month, at least 6,500 crypto users were infected by malware that drained their digital wallets. The federal government has pledged to continue to crack down on cryptocurrency crimes. Acting assistant attorney general Nicholas L. McQuaid of the Justice Department's Criminal Division explained, "While the technologies and methods are constantly changing, the Criminal Division's commitment to aggressively pursuing fraud in all its forms remains unchanged." Write a comment Share this article: * Cryptography * Web Security Suggested articles kobalos malware supercomputers Tiny Kobalos Malware Bedevils Supercomputers to Steal Logins The sophisticated backdoor steals SSH credentials for servers in academic and scientific high-performance computing clusters. February 2, 2021 piggybacking web skimmer e-commerce Magento Web Skimmers Piggyback in Ongoing Costway Website Compromise An e-commerce credit-card skimmer is being used by a second skimmer to steal payment data - and both are on Costway's website. February 2, 2021 [economic-stimulus-540x270] Identity Theft Spikes Due to COVID-19 Relief Cases reported to the FTC doubled last year as cybercriminals took advantage of increased filing for government relief benefits due to the pandemic. February 2, 2021 Discussion Leave A Comment Cancel Reply [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ]Save my name, email, and website in this browser for the next time I comment. [ ]Notify me when new comments are added. [Send Comment] [Submit Comment] This site uses Akismet to reduce spam. Learn how your comment data is processed. InfoSec Insider * [credit-c] Taking a Neighborhood Watch Approach to Retail Cybersecurity December 30, 2020 * data dump 6 Questions Attackers Ask Before Choosing an Asset to Exploit December 29, 2020 1 * [Magento_] Third-Party APIs: How to Prevent Enumeration Attacks December 23, 2020 * state actors defense cyberattacks Defending Against State and State-Sponsored Threat Actors December 21, 2020 1 * security resources prioritize How to Increase Your Security Posture with Fewer Resources December 17, 2020 Newsletter Subscribe to Threatpost Today Join thousands of people who receive the latest breaking cybersecurity news every day. Subscribe now Twitter Never-before-seen #malware is being used by the TeamTNT threat group to target #Kubernetes clusters. (via... https://t.co/PltcSPF4zs 37 mins ago Follow @threatpost Subscribe to our newsletter, Threatpost Today! Get the latest breaking news delivered daily to your inbox. Subscribe now Threatpost The First Stop For Security News * Home * About Us * Contact Us * Advertise With Us * RSS Feeds * Copyright (c) 2021 Threatpost * Privacy Policy * Terms and Conditions * Advertise * * * * * * * Topics * Black Hat * Breaking News * Cloud Security * Critical Infrastructure * Cryptography * Facebook * Government * Hacks * IoT * Malware * Mobile Security * Podcasts * Privacy * RSAC * Security Analyst Summit * Videos * Vulnerabilities * Web Security Threatpost * * * * * * * Topics * Cloud Security * Malware * Vulnerabilities * Privacy Show all * Black Hat * Critical Infrastructure * Cryptography * Facebook * Featured * Government * Hacks * IoT * Mobile Security * Podcasts * RSAC * Security Analyst Summit * Slideshow * Videos * Web Security Authors * Lindsey O'Donnell * Tara Seals * Tom Spring Threatpost * Home * About Us * Contact Us * Advertise With Us * RSS Feeds * HackerOne Spotlight [ ] Search * * * * * * * InfoSec Insider Infosec Insider Post Infosec Insider content is written by a trusted community of Threatpost cybersecurity subject matter experts. Each contribution has a goal of bringing a unique voice to important cybersecurity topics. Content strives to be of the highest quality, objective and non-commercial. Sponsored Sponsored Content Sponsored Content is paid for by an advertiser. Sponsored content is written and edited by members of our sponsor community. This content creates an opportunity for a sponsor to provide insight and commentary from their point-of-view directly to the Threatpost audience. The Threatpost editorial team does not participate in the writing or editing of Sponsored Content.