Actress Lindsay Lohan is on the list of celebrities who have misleadingly promoted cryptocurrencies, Portal
Actress Lindsey Lohan, YouTuber Jake Paul and rapper Soulja Boy are some of eight celebrities who were sued by the Financial Regulator this Wednesday after promoting cryptocurrencies TRX and BTT without disclosing that they were paid to do so. The United States Securities and Exchange Commission, the English acronym SEC, has announced that six of the celebrities have agreed to pay fines totaling $400,000 to prevent the lawsuit from going to court. It’s the latest case in the authorities’ crusade to protect investors from misleading ads related to cybercurrencies.
“Bitcoin to the Moon”. With this short message, published on Twitter in February 2021, Lohan introduced herself as a passionate supporter of cryptocurrency. That was an enthusiastic message in front of his eight million followers on his social network account. This text was followed by several others. In another, he addressed the perceived benefits of the alternative currency. “It’s the future that happens now,” wrote Lohan, 36, as she attempted to promote the auction of an NFT of her own. Shortly thereafter, the Crazy Friday performer claimed to be researching the TRX currency, promoted by controversial businessman Justin Sun. “Super fast and with 0 commissions,” he added.
The SEC’s lawsuit suggests that Lohan was in fact paid a $10,000 payment alongside the other stated celebrities (singers Austin Mahone and Ne-Yo, rappers Lil Yachty and Akon, and porn actress Kendra Lust) to promote the cryptocurrency among her followers different platforms. The actress has to pay back the money to regulators, in addition to a $30,000 fine, for failing to disclose that she was part of an advertising campaign.
In recent months, the regulator has launched similar legal action against Kim Kardashian, musician DJ Khaled, and athletes Paul Pierce and Floyd Mayweather. The influencer and the boxer promoted EthereumMax, which caused the price to surge, but the price crashed shortly after.
In the case prosecuted by the SEC in Manhattan, who argues that they can intervene because cryptocurrencies are investment vehicles, another character is at the center of the plot. This is Justin Sun, a Chinese businessman who helped increase the transaction volume of the TRX and BTT currencies. According to the authorities, in 2018 and 2019 Sun employees increased the price of cryptocurrencies by selling and buying them themselves.
In July 2019, the Sun caused another surprise when it postponed a lunch with billionaire Warren Buffett for which it had bid $4.6 million in a charity auction. A Sun company announced over the networks that the businessman was suffering from kidney stones, forcing him to transport his meal with the Oracle of Omaha, which was scheduled to take place two days later. Since then, Sun has faced allegations from Beijing that he was involved in illegal activities. The SEC now considers him the mastermind behind a fraudulent scheme.
The Tron Limited Foundation, one of the Sun-owned companies founded in 2014, paid Jake Paul more than $25,000 in bitcoin to promote the currency. Paul, 26, is an internet celebrity who has recently become a professional boxer. Paul has accepted the agreement offered by the SEC, which includes the return of his winnings and a $75,000 fine. With the exception of musicians Soulja Boy and Mahone, all of the celebrities accepted the SEC’s offer.
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