The Securities and Exchange Commission on Wednesday accused eight celebrities of supporting cryptocurrencies without disclosing that they were paid, according to a statement. According to The Hill, those charged with breaking investor protection rules include actress Lindsay Lohan and boxer Jake Paul. Three of Justin Sun’s businesses and three other cryptocurrency entrepreneurs have been charged with fraud.
According to CNBC, Sun, a Grenada-based diplomat and protege of Jack Ma, was accused of defrauding investors by giving the impression that Tronix and BitTorrent were actively traded when they weren’t. According to the SEC, Sun is also responsible for organizing the marketing campaign that “hid the fact that celebrities were paid to tweet.”
Other famous people charged are Ne-Yo, a musician born Shaffer Smith; Akon, an American singer from Senegal; Austin Mahone, a singer; Kendra Lust, a porn actress born Michele Mason; Lil Yachty, a rapper born Miles Parks McCollum; and Soulja Boy, a rapper born DeAndre Cortez Way. According to the BBC, everyone except Mahone and Soulja Boy have resolved the complaints with the SEC.
The settlement agreements omitted any admission of guilt. “This lawsuit again highlights the enormous risk investors face when securities of crypto assets are offered and sold without sufficient disclosure,” SEC Chairman Gary Gensler said in a statement.
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