Lindsay Lohan Faces Charges from SEC
US regulators have accused eight well-known personalities, such as Lindsay Lohan and Jake Paul, of engaging in an illicit cryptocurrency scheme. The charges claim that these celebrities used their social media presence to enhance the value of two crypto tokens without disclosing that they received payment for promoting them.
The US Securities and Exchange Commission (SEC) officially announced the charges on Wednesday. The SEC claims celebrities used social media to share their cryptocurrency promotional messages.
Lindsay Lohan Charges
On February 11, 2021, Lindsay Lohan, who has more than 8 million Twitter followers, tweeted that she was already liking Justin Sun's cryptocurrencies, which included $TRX.
In the tweet, she praised the currencies' super-fast speed and lack of fees while commending Justin Sun. In March 2021, she advertised an auction for an NFT of one of her songs and tweeted about it on April 1, 2021, saying there were just over 9 hours left to bid.
SEC Chair Gary Gensler stated that the Lindsay Lohan charges and associated cases highlighted the significant risks investors are exposed to when crypto asset securities are marketed and sold without adequate disclosure.
Other celebrities charged with illegally promoting crypto assets
Charges have been brought against several famous individuals, including musician Soulja Boy (real name DeAndre Cortez Way), aged 32; singer Austin Mahone, aged 26; porn actress Michele Mason (better known as Kendra Lust), aged 44; musician Ne-Yo (real name Shaffer Smith), aged 43; rapper Lil Yachty (real name Miles Parks McCollum), aged 25, and Senegalese-American singer Akon (real name Aliaune Thiam), aged 49.
According to the SEC, they are accused of illegally promoting TRX and BTT crypto assets without disclosing their compensation.
Additionally, crypto investor and Grenada diplomat Justin Sun is accused of fraud for manipulating the trading activity of the two tokens to make it appear as if they were being actively traded. This practice is known as "wash trading".
Except for Mr. Cortez Way, Akon, and Mr. Mahone, all the celebrities, including Lindsay Lohan, have collectively paid over $400,000 to resolve the charges.
Author: Harsh Verma
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