This case was last updated from PACER on 04/02/2021 at 07:42:20 (UTC).

Securities and Exchange Commission of the United States v. Krstic et al

Case Summary

On February 1, 2021, the Securities and Exchange Commission (“SEC”) represented by Alison R Levine, Richard G. Primoff and Richard R. Best, all lawyers of SEC’s New York Regional Office, filed a civil action against Kristijan Krstic (“Krstic”), John DeMarr (“DeMarr”), and Robin Enos (“Enos”) (collectively, “Defendants”), seeking disgorgement of all alleged ill-gotten gains and civil money penalties among other remedies for allegedly defrauding hundreds of retail investors out of more than $11 million through two fraudulent and unregistered digital asset securities offerings. This case was filed in U.S. District Court in the New York Eastern District with Judges Ramon E. Reyes, Jr. and Eric N. Vitaliano presiding. 

 

In their complaint, the SEC alleged that Krstic and DeMarr, with the substantial assistance of Enor, fraudulently induced investors to buy securities in two illegal and unregistered securities offerings: “Start Options” and “Bitcoiin2Gen”. These securities served as a vehicle for the Defendants to allegedly misappropriate investor funds amounting to at least $11.4 million from more than 460 investors. The SEC alleged that from approximately December 2017 through late January 2018, Krstic and DeMarr touted Start Options' purported digital asset mining and trading platform, which they falsely claimed was “the largest Bitcoin exchange in euro volume and liquidity” and “consistently rated the best and most secure Bitcoin exchange by independent news media.”

 

The SEC further alleged that “from late January 2018 through May 2018, Krstic and DeMarr began promoting Bitcoiin2Gen and the sale of its so-called B2G tokens, as part of an illegal unregistered and purported initial coin offering (“ICO”).” The SEC also alleged that “Enos drafted the fraudulent promotional materials he knew DeMarr and Krstic were disseminating to the investing public in connection with these offerings.”

 

According to the SEC, “In reality, Bitcoiin2Gen was a sham. Enos knowingly or recklessly drafted, and DeMarr and Krstic knowingly disseminated, fictitious technical white papers and fake websites to create the misleading appearance that the B2G tokens were genuine digital assets that were trading on the Ethereum blockchain, when they knew or recklessly disregarded that they were not. They also disseminated false and misleading misrepresentations, and omitted material facts regarding, among other things, the use of investor funds and the background and qualifications of the Bitcoiin2Gen project’s principals.”

 

In the eight claims for relief filed by the SEC, Krstic and DeMarr have been charged with allegedly Violations of the Securities Act Section 17(a), the Exchange Act Section 10(b) and Rule 10b-5, Aiding and Abetting Violations of Securities Act Section 17(a), Aiding and Abetting Violations of Exchange Act Section 10(b) and Rule 10b-5, Violations of Securities Act Sections 5(a) and 5(c). The SEC has also individually charged DeMarr with alleged Violations of the Exchange Act Section 15(a), and Enor has been charged with allegedly Aiding and Abetting Violations of Securities Act Section 17(a) and Aiding and Abetting Violations of Exchange Act Section 10(b) and Rule 10b-5.

 

In the prayer for relief, SEC requested the court to pass an order finding violation of alleged security laws and rules by the Defendants and thereby to pass an order for  injunctive relief, disgorgement plus interest, penalties, and an officer-and-director bar against Krstic and DeMarr.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-00529

  • Filing Date:

    02/01/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

  • Courthouse:

    New York Eastern District

Judge Details

Referral Judge

Ramon E. Reyes, Jr

Presiding Judges

Eric N. Vitaliano

LaShann DeArcy Hall

 

Party Details

Plaintiff

Securities and Exchange Commission of the United States

Defendants

Kristijan Krstic

John DeMarr

Robin Enos

Felix Logan

Intervenor

United States of America

Attorney/Law Firm Details

Plaintiff Attorneys

Alison R Levine

Attorney at U.S. Securities and Exchange Commission

200 Vesey Street, Suite 400

New York, NY 10281

Richard R. Best

Attorney at U.A. Securities and Exchange Commission

200 Vesey Street, Ste 400

New York, NY 10281

Richard G. Primoff

Attorney at Securities & Exchange Commission

200 Vesey Street

New York, NY 10281

John O'Donnell Enright

Attorney at U.S. Securities and Exchange Commission

200 Vesey Street, Suite 400

New York, NY 10281-1022

Intervenor Attorney

Kaitlin Teresa Farrell

Attorney at US Attorney's Office for the Eastern District of New Yo

271A Cadman Plaza East

Brooklyn, NY 11201

 

Court Documents

12 #1

Proposed Judgment Consent to Judgment and Proposed Judgment

#12

(#12) Letter MOTION to Approve Consent Judgment by Securities and Exchange Commission of the United States. (Attachments: #1 Proposed Judgment Consent to Judgment and Proposed Judgment) (Primoff, Richard) (Entered: 03/31/2021)

11 #2

Proposed Order

11 #1

Memorandum in Support

#11

(#11) MOTION to Intervene , MOTION to Stay by United States of America. (Attachments: #1 Memorandum in Support, #2 Proposed Order) (Farrell, Kaitlin) (Entered: 03/29/2021)

#10

(#10) NOTICE of Appearance by Kaitlin Teresa Farrell on behalf of United States of America (aty to be noticed) (Farrell, Kaitlin) (Entered: 03/29/2021)

#9

(#9) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission of the United States. John DeMarr waiver sent on 2/9/2021, answer due 4/12/2021. (Primoff, Richard) (Entered: 02/16/2021)

#8

(#8) NOTICE of Appearance by John O'Donnell Enright on behalf of Securities and Exchange Commission of the United States (aty to be noticed) (Enright, John) (Entered: 02/04/2021)

#7

(#7) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission of the United States. Robin Enos waiver sent on 2/2/2021, answer due 4/5/2021. (Primoff, Richard) (Entered: 02/04/2021)

#6

(#6) NOTICE of Appearance by Alison R Levine on behalf of Securities and Exchange Commission of the United States (aty to be noticed) (Levine, Alison) (Entered: 02/01/2021)

#5

(#5) This attorney case opening filing has been checked for quality control. See the attachment for corrections that were made, if any. (Bowens, Priscilla) (Entered: 02/01/2021)

#4

(#4) In accordance with Rule 73 of the Federal Rules of Civil Procedure and Local Rule 73.1, the parties are notified that if all parties consent a United States magistrate judge of this court is available to conduct all proceedings in this civil action including a (jury or nonjury) trial and to order the entry of a final judgment. Attached to the Notice is a blank copy of the consent form that should be filled out, signed and filed electronically only if all parties wish to consent. The form may also be accessed at the following link: #http://www.uscourts.gov/uscourts/FormsAndFees/Forms/AO085.pdf. You may withhold your consent without adverse substantive consequences. Do NOT return or file the consent unless all parties have signed the consent. (Bowens, Priscilla) (Entered: 02/01/2021)

3 #1

Enos summons

#3

(#3) Summons Issued as to John DeMarr, Robin Enos. (Attachments: #1 Enos summons) (Bowens, Priscilla) (Entered: 02/01/2021)

#2

(#2) NOTICE of Appearance by Richard G. Primoff on behalf of Securities and Exchange Commission of the United States (aty to be noticed) (Primoff, Richard) (Entered: 02/01/2021)

1 #3

Proposed Summons Summons to Enos

1 #2

Proposed Summons Summons to DeMarr

#1

(#1) COMPLAINT against John DeMarr, Robin Enos, Kristijan Krstic Was the Disclosure Statement on Civil Cover Sheet completed -Yes,, filed by Securities and Exchange Commission of the United States. (Attachments: #1 Civil Cover Sheet, #2 Proposed Summons Summons to DeMarr, #3 Proposed Summons Summons to Enos) (Best, Richard) (Entered: 02/01/2021)

11 More Documents Available
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Docket Entries

  • 03/31/2021
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  • Docket(#12) Letter MOTION to Approve Consent Judgment by Securities and Exchange Commission of the United States. (Attachments: #1 Proposed Judgment Consent to Judgment and Proposed Judgment) (Primoff, Richard) (Entered: 03/31/2021)

    Read MoreRead Less
  • 03/29/2021
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  • Docket(#11) MOTION to Intervene , MOTION to Stay by United States of America. (Attachments: #1 Memorandum in Support, #2 Proposed Order) (Farrell, Kaitlin) (Entered: 03/29/2021)

    Read MoreRead Less
  • 03/29/2021
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  • Docket(#10) NOTICE of Appearance by Kaitlin Teresa Farrell on behalf of United States of America (aty to be noticed) (Farrell, Kaitlin) (Entered: 03/29/2021)

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  • 03/02/2021
  • DocketORDER REASSIGNING CASE. Case reassigned to Judge LaShann DeArcy Hall for all further proceedings. Judge Eric N. Vitaliano no longer assigned to case Please download and review the Individual Practices of the assigned Judges, located on our #website. Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. Ordered by Chief Judge Margo K. Brodie on 3/2/2021. (Bowens, Priscilla) (Entered: 03/02/2021)

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  • 02/16/2021
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  • Docket(#9) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission of the United States. John DeMarr waiver sent on 2/9/2021, answer due 4/12/2021. (Primoff, Richard) (Entered: 02/16/2021)

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  • 02/04/2021
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  • Docket(#8) NOTICE of Appearance by John O'Donnell Enright on behalf of Securities and Exchange Commission of the United States (aty to be noticed) (Enright, John) (Entered: 02/04/2021)

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  • 02/04/2021
  • View Court Documents
  • Docket(#7) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission of the United States. Robin Enos waiver sent on 2/2/2021, answer due 4/5/2021. (Primoff, Richard) (Entered: 02/04/2021)

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  • 02/01/2021
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  • Docket(#6) NOTICE of Appearance by Alison R Levine on behalf of Securities and Exchange Commission of the United States (aty to be noticed) (Levine, Alison) (Entered: 02/01/2021)

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  • 02/01/2021
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  • Docket(#5) This attorney case opening filing has been checked for quality control. See the attachment for corrections that were made, if any. (Bowens, Priscilla) (Entered: 02/01/2021)

    Read MoreRead Less
  • 02/01/2021
  • View Court Documents
  • Docket(#4) In accordance with Rule 73 of the Federal Rules of Civil Procedure and Local Rule 73.1, the parties are notified that if all parties consent a United States magistrate judge of this court is available to conduct all proceedings in this civil action including a (jury or nonjury) trial and to order the entry of a final judgment. Attached to the Notice is a blank copy of the consent form that should be filled out, signed and filed electronically only if all parties wish to consent. The form may also be accessed at the following link: #http://www.uscourts.gov/uscourts/FormsAndFees/Forms/AO085.pdf. You may withhold your consent without adverse substantive consequences. Do NOT return or file the consent unless all parties have signed the consent. (Bowens, Priscilla) (Entered: 02/01/2021)

    Read MoreRead Less
  • 02/01/2021
  • View Court Documents
  • Docket(#3) Summons Issued as to John DeMarr, Robin Enos. (Attachments: #1 Enos summons) (Bowens, Priscilla) (Entered: 02/01/2021)

    Read MoreRead Less
  • 02/01/2021
  • DocketCase Assigned to Judge Eric N. Vitaliano and Magistrate Judge Ramon E. Reyes, Jr. Please download and review the Individual Practices of the assigned Judges, located on our #website. Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. (Bowens, Priscilla) (Entered: 02/01/2021)

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  • 02/01/2021
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  • Docket(#2) NOTICE of Appearance by Richard G. Primoff on behalf of Securities and Exchange Commission of the United States (aty to be noticed) (Primoff, Richard) (Entered: 02/01/2021)

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  • 02/01/2021
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  • Docket(#1) COMPLAINT against John DeMarr, Robin Enos, Kristijan Krstic Was the Disclosure Statement on Civil Cover Sheet completed -Yes,, filed by Securities and Exchange Commission of the United States. (Attachments: #1 Civil Cover Sheet, #2 Proposed Summons Summons to DeMarr, #3 Proposed Summons Summons to Enos) (Best, Richard) (Entered: 02/01/2021)

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