The Securities and Exchange Commission charged eight celebrities on Wednesday with supporting cryptocurrencies without disclosing they were being paid, according to a statement. According to The Hill, among those accused of breaking investor protection regulations are actress Lindsay Lohan and boxer Jake Paul. Three of Justin Sun's businesses and three other cryptocurrency entrepreneurs were accused of fraud.
According to CNBC, Sun, a Grenada-based diplomat and Jack Ma's protege, was accused of defrauding investors by making it appear as though Tronix and BitTorrent were actively traded when they weren't. According to the SEC, Sun is also charged with organizing the marketing campaign that "concealed the fact that the celebrities were paid for their tweet."
The other famous people accused 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 save Mahone and Soulja Boy resolved the complaints with the SEC.
Settlement agreements omitted any admission of guilt. "This prosecution highlights again the tremendous risk investors face when crypto asset securities are offered and sold without sufficient disclosure," SEC Chair Gary Gensler said in a statement.
According to CNBC, Sun, a Grenada-based diplomat and Jack Ma's protege, was accused of defrauding investors by making it appear as though Tronix and BitTorrent were actively traded when they weren't. According to the SEC, Sun is also charged with organizing the marketing campaign that "concealed the fact that the celebrities were paid for their tweet."
The other famous people accused 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 save Mahone and Soulja Boy resolved the complaints with the SEC.
Settlement agreements omitted any admission of guilt. "This prosecution highlights again the tremendous risk investors face when crypto asset securities are offered and sold without sufficient disclosure," SEC Chair Gary Gensler said in a statement.
