Celebrities Face SEC Charges for Promoting Cryptocurrency Without Disclosure
Lindsay Lohan, Jake Paul, Lil Yachty, and five other celebrities have been charged by the SEC for violating securities laws by touting cryptocurrency without disclosing that they were compensated for doing so. The charges are part of a broader investigation into crypto entrepreneur Justin Sun and his companies, Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. The eight celebrities, except for Austin Mahone and Soulja Boy, have reached settlements with the SEC involving more than $400,000 in disgorgement, interest, and penalties. Sun is accused of manipulating the market for Tronix (TRX) and BitTorrent (BTT) through wash trading and illegal and unregistered sales of the token, generating $31 million in proceeds.