The Securities and Exchange Commission has archived Charges against a handful of celebrities, including Lindsay Lohan, Jake Paul and Ne-Yo, for breaking laws by promoting cryptocurrency.
On Wednesday, the SEC filed the charges against the celebrities as part of its broader charges brought against crypto entrepreneur Justin Sun and three of his companies: Tron Foundation Ltd, BitTorrent Foundation Ltd and Rainberry Inc (formerly BitTorrent) for the unregistered offering and sale of the values of crypto assets Tronix (TRX) and BitTorrent (BTT).
The SEC indicted eight celebrities, which also included rappers Soulja Boy and Lil Yachty, singers Austin Mahone and Akon, and adult film star Kendra Lust for “illegally promoting TRX and/or BTT without disclosing that they were compensated.” for doing so and the amount of their compensation.”
According to the SEC, Sun and his companies offered and sold crypto asset securities as investments through various unregistered “bounty programs,” which directed “interested parties to promote the tokens on social media, join, and recruit others to Telegram and Discord, affiliated with Tron channels, and creating BitTorrent accounts in exchange for TRX and BTT distributions.”
“This case again demonstrates the high risk investors face when crypto assets are offered and sold without proper disclosure,” SEC Chairman Gary Gensler said in a statement.
All of the celebrities named, except for Soulja Boy and Austin Mahone, have agreed to pay a total of more than $400,000 in rebates, interest, and penalties to settle the charges, neither admitting nor denying the SEC’s findings.
