Lindsey Lohan and other celebrities to pay $400,000 for advertising cryptocurrency
She and seven other celebrities were sued for promoting this digital asset. Nearly all of them agreed to pay the fine.
(Cordon Press).
Lindsey Lohan and seven other celebrities were sued and forced to pay $400,000 each for advertising cryptocurrencies. The Securities and Exchange Commission (SEC) uncovered the case. It accused the actress along with influencer and content creator Jake Paul, singers Austin Mahone and Akon, porn star Kendra Lust and rappers Ne-Yo, Soulja Boy and Lil Yachty for "illegally touting Tronix (TRX) and/or BitTorrent (BTT) without disclosing that they were compensated for doing so and the amount of their compensation."
The majority agreed to pay the $400,000 to avoid having to deal with the charges. They did so without admitting or denying the allegations. The only ones who claimed they are innocent and refused to pay the fine were Mahone and Soulja Boy.
The SEC revealed that these celebrities were facing this fine in a press release. The commission reported that crypto-entrepreneur Justin Sun, owner of Tron Foundation Ltd, BitTorrent Foundation Ltd and Rainberry Inc (formerly known as BitTorrent), was charged with offering and selling Tronix (TRX) and BitTorrent (BTT) cryptocurrencies without proper registration.
The SEC reported that Justin Sun illegally offered and sold the cryptocurrencies as if they were an investment through unregistered "bounty programs.” This caused the “directed interested parties to promote the tokens on social media, join and recruit others to Tron-affiliated Telegram and Discord channels, and create BitTorrent accounts in exchange for TRX and BTT distributions."
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