Celebrities Lindsay Lohan, Lil Yachty, Jake Paul and others Face SEC Charges for Crypto Marketing:
The Securities and Exchange Commission announced charges against crypto asset entrepreneur Justin Sun and three of his wholly-owned companies today.
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The SEC they also charged Sun and his companies with fraudulently manipulating the secondary market for TRX through extensive wash trading, which involves the simultaneous or near-simultaneous purchase and sale of a security to make it appear actively traded without an actual change in beneficial ownership and for orchestrating a scheme to pay celebrities to tout TRX and BTT without disclosing their compensation.
The SEC they have simultaneously charged the following eight celebrities for illegally touting TRX and BTT without disclosing that they were compensated for doing so and the amount of their compensation.
According to the Securities and Exchange Commission (SEC), Lindsay Lohan, Lil Yachty, and Jake Paul are among celebrities promoting cryptocurrencies on social media platforms without disclosing their financial relationships with the companies behind the tokens. This lack of transparency is a violation of federal securities law, which requires influencers to disclose any compensation they receive for promoting investments.
According to the Securities and Exchange Commission (SEC), Lindsay Lohan, Lil Yachty, and Jake Paul are among celebrities promoting cryptocurrencies on social media platforms without disclosing their financial relationships with the companies behind the tokens. This lack of transparency is a violation of federal securities law, which requires influencers to disclose any compensation they receive for promoting investments.
Moms Justice
The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, alleges that Sun and his companies offered and sold TRX and BTT as investments through multiple unregistered “bounty programs,” which directed interested parties to promote the tokens on social media, join and recruit others to Tron-affiliated Telegram and Discord channels, and create BitTorrent accounts in exchange for TRX and BTT distributions.
Lindsay Lohan, Jake Paul, DeAndre Cortez, Way (Soulja Boy), Austin Mahone, Michele Mason (Kendra Lust), Miles Parks McCollum (Lil Yachty, Shaffer Smith (Ne-Yo), Aliaune Thiam (Akon) were all named in the complaint.
Moms Justice
Kim Kardashian recently reached a settlement with the SEC after facing allegations related to her promotion of a cryptocurrency without proper disclosure. In line with federal securities laws, influencers are required to disclose any compensation they receive for promoting investments. Kardashian, however, failed to do so, leading to potential misinformation among her millions of followers. By settling with the SEC, Kardashian has acknowledged her responsibility to maintain transparency and avoid future violations. This case highlights the importance of holding celebrities and influencers accountable for their actions, ensuring that they provide clear and accurate information to the public when endorsing investment opportunities.
Moms Justice