Cryptocurrencies are far from gaining the trust of the people and seem to stray even further when they are involved in scandals such as those involving celebrities such as Jake Paul and Lindsay Lohan, who must pay millions for a case related to fraud.
In the scene of cryptocurrencies and other volatile resources, it is common to see scams and situations that compromise investors. Several singers and celebrities are involved in one more.
Today it was announced that the United States Securities and Exchange Commission (SEC) has fined crypto guru Justin Sun for fraud and security violations, along with 8 celebrities involved on charges stemming from this situation: Jake Paul (brother of wrestler and card collector Pokemon Logan Paul), Lindsay Lohan, Soulja Boy, Austin Mahone, Kendra Lust, Lil Yachty, Ne-Yo and Akon.
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According to the details, the lawsuit will sanction Sun for manipulating 2 cryptocurrencies (Tronix and BitTorrent) to make it appear that they had activity, when in fact there was not, which would encourage more people to invest. As for celebrities, they were fined for engaging in the business without mentioning that it was paid advertising or promotion.
According to the report (via CNBC), except for Soulja Boy and Mahone, all of the celebrities have agreed to pay a collective amount of $400,000 USD to settle the charges without admitting or denying guilt.
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“Sun paid celebrities with millions of social media followers to promote unregistered offers, specifically telling them not to disclose their compensation. This is conduct that federal security laws were designed to protect against, regardless of the labels they put on it.” Sun and others used,” said SEC executive Gurbir Grewal, who dismissed Sun’s maneuvers as an “old playbook for deceiving and harming investors.”
Neither Sun nor its representatives have issued a comment on the matter.
What do you think of this fraud case? Tell us in the comments.
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