This case was last updated from U.S. District Courts on 02/14/2023 at 15:53:21 (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

Judge Details

Presiding Judge

LaShann DeArcy Hall

Referral Judge

Marcia M. Henry

 

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

Richard G. Primoff

John O'Donnell Enright

Richard R. Best

Intervenor Attorney

Kaitlin Teresa Farrell

 

Court Documents

25 #2

Individual Practice Rules

25 #1

Proposed Discovery Plan

#25

(#25) SCHEDULING ORDER: A telephone initial conference is schedule for 3:30PM on 08/03/2021 before Magistrate Judge Marcia M. Henry. All counsel must attend. The parties are directed to call the toll-free number 888-808-6929. The access code is 9281384. The parties shall dial in five (5) minutes before the conference. Counsel are directed to review the attached Initial Conference Order and this Court's Individual Practice Rules for instructions. By 07/27/2021, the parties must file a joint and completed copy of the attached Proposed Discovery Plan (also available in PDF format at: #https://img.nyed.uscourts.gov/files/local_rules/ProposedDiscoveryPlanMMH.pdf). So Ordered by Magistrate Judge Marcia M. Henry on 07/19/2021. (Attachments: #1 Proposed Discovery Plan, #2 Individual Practice Rules) (Castro, Ricardo). (Entered: 07/19/2021)

24 #3

Appendix Exh. C to Primoff Decl.; publications of summons

24 #2

Appendix Exh. B to Primoff Decl; email error messages

24 #1

Appendix Exh. A. to Primoff Decl.; Email service

#24

(#24) SUMMONS Returned Executed by Securities and Exchange Commission of the United States. Kristijan Krstic served on 6/7/2021, answer due 6/28/2021. (Attachments: #1 Appendix Exh. A. to Primoff Decl.; Email service, #2 Appendix Exh. B to Primoff Decl; email error messages, #3 Appendix Exh. C to Primoff Decl.; publications of summons) (Primoff, Richard) (Entered: 07/06/2021)

23 #1

Exhibit Exh A, undeliverable email message

3 #1

Enos summons

#3

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

#26

(#26) Consent MOTION to Adjourn Conference Request to adjourn 8/3 conference in light of stay order entered in proceeding by Securities and Exchange Commission of the United States. (Primoff, Richard) (Entered: 07/21/2021)

#5

#4

#2

1 #3

Proposed Summons Summons to Enos

1 #2

Proposed Summons Summons to DeMarr

1 #1

Civil Cover Sheet

#1

35 More Documents Available
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Docket Entries

  • 07/23/2021
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  • DocketORDER: granting #26 Motion to Adjourn Conference. The initial conference scheduled for 08/03/2021 is hereby adjourned sine die. So Ordered by Magistrate Judge Marcia M. Henry on 07/23/2021. (Gans, Courtney) (Entered: 07/23/2021)

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  • 07/21/2021
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  • Docket(#26) Consent MOTION to Adjourn Conference Request to adjourn 8/3 conference in light of stay order entered in proceeding by Securities and Exchange Commission of the United States. (Primoff, Richard) (Entered: 07/21/2021)

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  • 07/19/2021
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  • Docket(#25) SCHEDULING ORDER: A telephone initial conference is schedule for 3:30PM on 08/03/2021 before Magistrate Judge Marcia M. Henry. All counsel must attend. The parties are directed to call the toll-free number 888-808-6929. The access code is 9281384. The parties shall dial in five (5) minutes before the conference. Counsel are directed to review the attached Initial Conference Order and this Court's Individual Practice Rules for instructions. By 07/27/2021, the parties must file a joint and completed copy of the attached Proposed Discovery Plan (also available in PDF format at: #https://img.nyed.uscourts.gov/files/local_rules/ProposedDiscoveryPlanMMH.pdf). So Ordered by Magistrate Judge Marcia M. Henry on 07/19/2021. (Attachments: #1 Proposed Discovery Plan, #2 Individual Practice Rules) (Castro, Ricardo). (Entered: 07/19/2021)

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  • 07/06/2021
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  • Docket(#24) SUMMONS Returned Executed by Securities and Exchange Commission of the United States. Kristijan Krstic served on 6/7/2021, answer due 6/28/2021. (Attachments: #1 Appendix Exh. A. to Primoff Decl.; Email service, #2 Appendix Exh. B to Primoff Decl; email error messages, #3 Appendix Exh. C to Primoff Decl.; publications of summons) (Primoff, Richard) (Entered: 07/06/2021)

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  • 06/15/2021

  • DocketCase Reassigned to Magistrate Judge Marcia M. Henry. Magistrate Judge Ramon E. Reyes, Jr no longer assigned to the 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. (Mahoney, Brenna) (Entered: 06/15/2021)

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  • 05/24/2021
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  • DocketORDER granting #23 Motion to Amend/Correct/Supplement Ordered by Magistrate Judge Ramon E. Reyes, Jr on 5/24/2021. (Reyes, Ramon) (Entered: 05/24/2021)

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  • 05/24/2021
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  • DocketORDER granting #22 Motion for Service by Publication Ordered by Magistrate Judge Ramon E. Reyes, Jr on 5/24/2021. (Reyes, Ramon) (Entered: 05/24/2021)

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  • 05/24/2021
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  • Docket(#23) First MOTION to Amend/Correct/Supplement #22 Second MOTION for Service by Publication Motion to Modify 4/19/21 Order regarding alternative service Letter updating Court as to change in facts by Securities and Exchange Commission of the United States. (Attachments: #1 Exhibit Exh A, undeliverable email message) (Primoff, Richard) (Entered: 05/24/2021)

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  • 05/18/2021
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  • Docket(#22) Second MOTION for Service by Publication Motion to Modify 4/19/21 Order regarding alternative service by Securities and Exchange Commission of the United States. (Attachments: #1 Exhibit Exh. A, 4/19/21 email service on Defendant Krstic, #2 Exhibit Exh. B, email delivery error, #3 Exhibit Exh. C, 5/17/21 publication of notice and summons) (Primoff, Richard) (Entered: 05/18/2021)

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  • 04/19/2021
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  • Docket(#21) ORDER granting #18 Motion for Service by Publication. Ordered by Magistrate Judge Ramon E. Reyes, Jr on 4/19/2021. (Reyes, Ramon) (Entered: 04/19/2021)

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13 More Docket Entries
  • 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
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  • 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)

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  • 02/01/2021
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  • 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)

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

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  • 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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