Regulatory authorities in the United States have indicted eight celebrities, including Lindsay Lohan and Jake Paul, for their involvement in an illegal cryptocurrency trading scheme.
Public figures used their social networks do promotion two digital currency traders without disclosing that they were paid create publicity.
The charges were filed by the US Securities and Exchange Commission (SEC), according to a statement released on Wednesday.
In the Lohan and Paula case, they paid to have the charges dismissed without pleading guilty.
Other celebrities (and their legal entities) were accused:
All are accused of illegally promoting TRX and BTT companies “without disclosing that they were compensated and the amount of their compensation,” the SEC said.
All celebrities, except Soulja Boy and Mahone, together paid more than $400,000 to settle expenses.
Lohan, best known for her role in Mean Girls (2004), had 8.4 million Twitter followers when she posted a message asking her followers to invest.
The 36-year-old actress, who according to documents pointing to her, lives in Dubai, United Arab Emirates, paid $10,000 to the SEC and another $30,000 in fines.
Paul, who is a famous YouTuber, boxer and resident of Puerto Rico, he was ordered to pay more than $100,000.
Justin Sun’s involvement
Justin Sun, a cryptocurrency investor and diplomat from the Caribbean island nation of Grenada, was also charged with fraud by manipulating the business activities of two companies in a scheme called “washing trade” inflate prices.
Sun, who was born in China and is a protégé of Alibaba founder Jack Ma, is famous for paying $4.6 million to dine with investor Warren Buffett.
He is accused of “orchestrating a promotional campaign in which he and his celebrity promoters concealed the fact that celebrities were paid for their tweets,” the SEC added in its press release.
your company, Tron Foundation Limited, BitTorrent Foundation Ltd. and Rainberry Inc.. (formerly BitTorrent), are also part of the scheme.
“This case once again demonstrates the high risk investors face when crypto-asset securities are offered and sold without proper disclosure,” said SEC Chairman Gary Gensler.
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