Popular blogger and boxer Jake Paul is among eight celebrities accused by the U.S. Securities and Exchange Commission (SEC) of illegally promoting crypto-assets.
According to an SEC press release, Paul and other celebrities, including actress Lindsay Lohan, hip-hop stars Soulja Boy, Lil Yachty, Ne-Yo, Akon, and adult film star Kendra Lust, were charged with promoting the crypto-assets Tronix and BitTorrent without disclosing that it was paid advertising.
Justin Sun, the crypto-asset entrepreneur at the center of the investigation, ran the companies and was also charged with unregistered offering and selling his crypto-assets to TRX and BTT, as well as fraudulent market manipulation for his crypto-brands.
Sun paid celebrities with millions of social media followers to promote unregistered offerings, while specifically instructing them not to disclose their compensation.
Gurbir Grewal, Director of the Division of Enforcement for the SEC
As a result, Paul and the other celebrities - with the exception of Soulja Boy and Austin Mahone - agreed to pay a total of more than $400,000 in disgorgement, interest, and penalties to settle the charges against them, without admitting or denying the findings of SEC.