Current:Home > reviewsThe SEC charges Lindsay Lohan, Jake Paul and others with illegally promoting crypto -AssetBase
The SEC charges Lindsay Lohan, Jake Paul and others with illegally promoting crypto
View
Date:2025-04-27 11:56:26
Eight celebrities including actor Lindsay Lohan, influencer Jake Paul and rapper Soulja Boy have been charged by federal regulators with illegally touting two cryptocurrencies and failing to disclose they were paid to do so.
The two cryptocurrencies, Tronix (TRX) and BitTorrent (BTT), were sold by crypto entrepreneur Justin Sun, who was also charged by the Securities and Exchange Commission on Wednesday.
Sun and three of his wholly-owned companies — Tron Foundation Limited, BitTorrent Foundation Ltd. and Rainberry Inc. — are accused of the unregistered offer and sale of crypto asset securities and manipulating the secondary market by "wash trading," which involves quickly buying and selling cryptocurrencies to make them seem like they're being actively traded.
The SEC also says Sun and the companies paid celebrities with vast social media followings to hype TRX and BTT and directed them not to publicly disclose their compensation.
"This case demonstrates again the high-risk investors face when crypto asset securities are offered and sold without proper disclosure," SEC chair Gary Gensler said in a statement.
The other celebrities charged in the scheme are:
- Austin Mahone
- Michele Mason (known as Kendra Lust)
- Miles Parks McCollum (known as Lil Yachty)
- Shaffer Smith (known as Ne-Yo)
- Aliaune Thiam (known as Akon)
Each of the eight is accused of illegally touting one or both of the securities.
Six of the celebrities — excluding Soulja Boy (whose legal name is DeAndre Cortez Way) and Mahone — have agreed to pay a total of more than $400,000 to settle the charges without admitting or denying the SEC's findings.
NPR reached out to representatives for each of the celebrities with a request for comment but did not immediately hear back from seven out of the eight. A representative for Jake Paul declined to comment.
Crypto's meteoric rise in popularity led to a wave of celebrities plugging various digital currencies, but regulators' interest in ferreting out illegal behavior in the crypto market has landed several of those stars in legal trouble.
In October, the SEC charged Kim Kardashian with using her Instagram account to tout a cryptocurrency without divulging that she was being paid to promote it.
veryGood! (6212)
Related
- Former longtime South Carolina congressman John Spratt dies at 82
- UAW says a majority of workers at an Alabama Mercedes plant have signed cards supporting the union
- LeBron James takes forceful stand on son Bronny James' status in NBA mock drafts
- Starbucks and Workers United, long at odds, say they’ll restart labor talks
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- TV Host Jesse Baird and Luke Davies Murder Case: Police Find Bodies of Missing Couple
- Pride flags would be largely banned in Tennessee classrooms in bill advanced by GOP lawmakers
- 45 Viral TikTok Beauty Products You'll Wish You Bought Sooner
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- Restrictive abortion laws disproportionately impact Black women in GOP-led states, new Democratic memo notes
Ranking
- Biden administration makes final diplomatic push for stability across a turbulent Mideast
- Sean 'Diddy' Combs accused of sexually assaulting 'The Love Album' producer in new lawsuit
- Adam Sandler's Daughters Sunny and Sadie Are All Grown Up During Family Night Out
- The killing of a Georgia nursing student is now at the center of the US immigration debate
- Person accused of accosting Rep. Nancy Mace at Capitol pleads not guilty to assault charge
- Patrick Mahomes, Travis Kelce and other Chiefs players party again in Las Vegas
- Reigning WNBA MVP Breanna Stewart re-signs with New York Liberty
- Complete debacle against Mexico is good for USWNT in the long run | Opinion
Recommendation
The 401(k) millionaires club keeps growing. We'll tell you how to join.
Court documents shed new details in killing of nursing student at University of Georgia
Nick Offerman slams 'homophobic hate' for his 'Last of Us' episode
Effort to repeal Washington’s landmark carbon program puts budget in limbo with billions at stake
The city of Chicago is ordered to pay nearly $80M for a police chase that killed a 10
'Dune: Part Two' release date, trailer, cast: When does sci-fi movie release in the US?
Patrick Mahomes, Travis Kelce and other Chiefs players party again in Las Vegas
Bronze pieces from MLK memorial in Denver recovered after being sold for scrap