Lindsay Lohan, Lil Yachty, Jake Paul Among Celebrities Hit with SEC Charges for Touting Crypto

variety.com:

Cynthia Littleton Business Editor Lindsay Lohan, Jake Paul, Ne-Yo and rapper Lil Yachty are among the eight notable names who have been hit with Securities and Exchange Commission charges for violating securities laws in touting crypto currencies. The SEC on Wednesday disclosed that charges were filed against eight celebrities in connection with the broader investigation of crypto entrepreneur Justin Sun and three of his companies: Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc., which marketed crypto asset securities under the brand names Tronix (TRX) and BitTorrent (BTT). The eight boldface names were charged with “illegally touting TRX and/or BTT without disclosing that they were compensated for doing so and the amount of their compensation,” according to the SEC.

The list also includes rapper Soulja Boy, singers Austin Mahone and Akon and adult film star Kendra Lust. All but Mahone and Soulja Boy (aka DeAndre Cortez Way) have reached settlements with the SEC that involve “more than $400,000 in disgorgement, interest, and penalties to settle the charges, without admitting or denying the SEC’s findings,” per the SEC. “This case demonstrates again the high risk investors face when crypto asset securities are offered and sold without proper disclosure,” said SEC chair Gary Gensler. “As alleged, Sun and his companies not only targeted U.S. investors in their unregistered offers and sales, generating millions in illegal proceeds at the expense of investors, but they also coordinated wash trading on an unregistered trading platform to create the misleading appearance of active trading in TRX. Sun further induced investors to purchase TRX and BTT by orchestrating a promotional campaign in which he