cryptocurrencies
The SEC accused eight celebrities, along with Tron founder Justin Sun, of “illegally promoting TRX and/or BTT.”
Wed 22 Mar 2023 22:42 GMT
The Securities and Exchange Commission has indicted a handful of celebrities, including Lindsay Lohan, Jake Paul, and Ne-Yo, for breaking the law in promoting cryptocurrencies.
On Wednesday, the SEC filed the indictments against the celebrities as part of its broader indictments against crypto entrepreneur Justin Sun and three of his companies: Tron Foundation Limited, BitTorrent Foundation Ltd. and Rainberry Inc (formerly BitTorrent) for the unregistered offering and sale of crypto-asset securities Tronix (TRX) and BitTorrent (BTT).
The SEC accused eight celebrities, including rappers Soulja Boy and Lil Yachty, singers Austin Mahone and Akon, and adult film star Kendra Lust, of “illegally promoting TRX and/or BTT without disclosing that they are committed to and in the.” amount were compensated their compensation”.
According to the SEC, Sun and its companies offered and sold the crypto-asset securities as investments through various unregistered “bounty programs” that “directed interested parties to promote the tokens on social media, join and others for those with.” Tron affiliates Telegram and Discord to recruit channels and create BitTorrent accounts in exchange for TRX and BTT distributions”.
“This case again demonstrates the high level of risk investors face when crypto-asset securities are offered and sold without proper disclosure,” SEC Chairman Gary Gensler said in a statement.
All of the celebrities mentioned, with the exception of Soulja Boy and Austin Mahone, agreed to pay a total of over $400,000 in disgorgement, interest and penalties to settle the charges, without admitting or denying the SEC’s findings.
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