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.
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.
