SEC Files Lawsuit Against Celebrities, Including Lindsay Lohan, for Promoting Cryptocurrencies

TRON

Several famous people, such as Lindsay Lohan, Jake Paul, and Ne-Yo, have been accused by the Securities and Exchange Commission of breaking laws by promoting cryptocurrencies.

The SEC filed charges against some famous people on Wednesday. These charges are part of a bigger case against Justin Sun, who is involved with three companies - Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc (previously known as BitTorrent). The charges are related to the illegal offer and sale of Tronix (TRX) and BitTorrent (BTT), which are types of cryptocurrency that are considered securities.

The SEC has accused eight famous people, among them Soulja Boy and Lil Yachty from the rap world, Austin Mahone and Akon from the pop world, and adult film actress Kendra Lust, of unlawfully promoting TRX and/or BTT without revealing that they had received payment for their actions or how much payment they had received.

The SEC reported that Sun and his businesses sold digital asset securities as investment opportunities through unregistered "bounty programs". These programs incentivized people to promote the tokens via social media, join Tron-associated Telegram and Discord channels, and create BitTorrent accounts, all in exchange for TRX and BTT distributions.

Gary Gensler, the chair of the SEC, stated that this instance highlights the considerable danger that investors encounter when digital asset securities are marketed and sold without adequate transparency.

Every celebrity mentioned, with the exception of Soulja Boy and Austin Mahone, has consented to pay more than $400,000 in disgorgement, interest, and penalties as a resolution to the allegations. The celebrities, however, have not admitted or denied the findings of the SEC.

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