The Securities and Exchange Commission filed a civil lawsuit against Kristijan Krstic and his alleged accomplices, John DeMarr and Robin Enos, for operating a Ponzi scheme empire. Krstic, a Serbian-Australian national also known as Felix Logan, was arrested in Serbia in late 2023.
Krstic previously fled Australia to evade charges stemming from his Start Options Ponzi scheme. He then relocated to the Philippines, where he allegedly ran his fraudulent operations. DeMarr, a former private detective residing in California, reportedly served as the master distributor for Krstic’s schemes. Enos, also a Californian resident, is a former attorney who lost his license in 2011 due to disciplinary actions. He continued to practice law without a license and faced sanctions after a client lost money in a company where Enos acted as general counsel.
The SEC alleges that Krstic, DeMarr, and Enos operated and promoted Start Options and Bitcoiin2Gen. These were unregistered securities offerings designed to defraud investors. Investors in Start Options and Bitcoiin2Gen collectively lost at least $11.4 million. The funds were misappropriated by DeMarr and Krstic, with none of the money returned to the more than 460 investors.
Between December 2017 and January 2018, Krstic, using an alias, and DeMarr promoted Start Options. They falsely claimed the platform was a leading digital asset mining and trading service, describing it as the largest Bitcoin exchange by euro volume and liquidity. They also claimed it was consistently rated the best and most secure by independent media.
From January 2018 through May 2018, Krstic and DeMarr shifted focus to Bitcoiin2Gen and its B2G tokens. This was presented as an initial coin offering (ICO), but it was an illegal, unregistered security. During this period, requests from Start Options investors to redeem their investments were ignored. Investors were pressured to roll their funds into B2G tokens instead.
Robin Enos is accused of drafting fraudulent promotional materials. These materials were knowingly disseminated by DeMarr and Krstic to the public. Bitcoiin2Gen itself was a sham. Enos allegedly drafted, and DeMarr and Krstic disseminated, fake white papers and websites. These documents were intended to create the false impression that B2G tokens were legitimate digital assets.
The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against all three defendants. The lawsuit follows Krstic's arrest in Serbia, which occurred after he allegedly fled from the Philippines. The SEC’s complaint details the specific misrepresentations made to investors regarding the nature of the investments and the purported success of the platforms. The agency is seeking to recover funds for defrauded investors.