Several public figures are accused of illegal cryptocurrency advertisements.
Jake Paul, who also appeared in the boxing ring, had to pay $100,000 for his illegal advertisements. EPA/AOP
US regulators have indicted eight public figures for illegally promoting cryptocurrency. Among the accused are actress Lindsay Lohan and a social media influencer Jake Paul.
Among other things, the news covered the matter CNN, BBC and CNBC.
Celebrities promoted Tronix crypto on their own social media platforms. However, they did not reveal in their social media posts that they had been paid for promoting crypto. According to CNN, Lohan was paid $10,000 for the ad and Paul $25,000.
In addition to the $10,000 she earned, Lohan had to pay $30,000 in fines to settle the case. Paul, on the other hand, pocketed $75,000 for settling the case in addition to his $25,000 fee.
Other accused public figures are rapper Soulja Boy aka DeAndre Cortez Way, singer Austin Mahoneadult entertainment star Kendra Lust aka Michele Mason, rapper Lil Yachty or Miles Parks McCollummusician Ne-Yo aka Shaffer Smith and musician Akon aka Aliaune Thiam.
The story continues after the picture.
Lindsay Lohan, who became famous for several hit movies, recently revealed that she is expecting her first child. PDO
The US Securities and Exchange Commission (SEC) announced the charges on Wednesday. All other defendants except Soulja Boy and Mahone settled their cases for a total of $400,000. Mediation did not mean admitting or denying guilt.
Tronix is backed by a Grenadian crypto investor and diplomat Justin Sun. The SEC announced that it is suing Sun and his three companies for failing to properly register crypto securities, manipulating markets and concealing paid advertisements.
– This case once again demonstrates the high risk investors face when crypto-securities are offered and sold without proper disclosures, SEC Chairman Gary Gensler says.
– At the same time, Sun paid celebrities with millions of social media followers to promote unregistered deals, but ordered them not to disclose the compensation they received.