The US Securities and Exchange Commission has filed charges against eight celebrities, including actor Lindsay Lohan and social media influencer Jake Paul, for promoting crypto assets without disclosing that they were paid to do so.
In a press release Wednesday, the SEC said Lohan and Paul advertised crypto asset securities Tronix (TRX) and BitTorrent (BTT) without revealing that they were compensated or how much they were paid. Musicians Soulja Boy, Austin Mahone, Lil Yachty, Ne-Yo, and Akon, as well as actor Kendra Lust, were also charged.
Soulja Boy and Mahone are the only two of the eight who did not agree to pay a collective fee of over $400,000 in disgorgement, interest, and penalties to settle the charges, which are not an admittance or denial of guilt, the SEC said.
A representive for Lohan told BuzzFeed News the actor was contacted in March 2022 and was unaware she was required to disclose she was paid for the promotion. She agreed to pay a fine to resolve the issue.
The SEC is also charging crypto entrepreneur Justin Sun and his companies, Tron Foundation Limited, BitTorrent Foundation Ltd, and Rainberry Inc. (formerly BTT), for the “unregistered offer and sale” of TRX and BTT.
