The trio were charged by SEC with crypto fraud and crypto violations along with several others.
The Securities and Exchange Commission has charged Tron founder Justin Sun with fraud and securities violations. The SEC further tightened its grip on YouTuber Jake Paul and celebrity Lindsay Lohan for the illegal promotion of cryptocurrencies.
Sun is charged with trade manipulation of two crypto tokens and false celebrity endorsement. Paul and Lohan were its celebrity backers of his Tronix and BitTorrent crypto assets.
Acc. to SEC, Justin Sun was engaged in fraudulent activity by manipulating the trading of two crypto tokens, creating a false appearance of active trading volume which didn’t exist in actuality.
Sun allegedly lured investors into purchasing Tron and BitTorrent native tokens TRX and BTT by using celebrity and influencer endorsements, hiding the fact that these celebrities were paid by Sun himself.
Lindsay Lohan, Jake Paul, Soulja Boy and several other popular names were charged by SEC. Only Soulja Boy and Mahone agreed to pay a joint sum of $400,000 in interest and penalties to settle the charges.
These celebrities used social media to promote TRX and BTT tokens and were also involved in recruiting others to Tron-affiliated Telegram and Discord channels.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.
