The US Securities and Exchange Commission (SEC) has announced charges against several high-profile celebrities in connection with a cryptocurrency promotion scheme. The charges include actor Lindsay Lohan, boxer Jake Paul, and a group of rappers and R&B stars, including Soulja Boy, Akon, and Lil Yachty.
According to the SEC, the celebrities promoted cryptocurrencies on their social media accounts without disclosing that they were paid for the promotions. The agency alleges that the celebrities received millions of dollars in exchange for promoting initial coin offerings (ICOs) to their millions of followers.
The SEC’s complaint states that the celebrities violated federal securities laws by failing to disclose that they were being paid to promote the ICOs. The agency also alleges that the celebrities made false and misleading statements about the ICOs, which misled their followers into believing that the investments were safe and profitable.
The celebrities have been charged with violating the anti-touting provisions of the federal securities laws. The SEC seeks to impose financial penalties and require celebrities to disgorge the profits they received from the cryptocurrency promotions.
The SEC has made it clear that it will not tolerate the promotion of securities without proper disclosure, especially when it involves the use of social media influencers. The agency has been cracking down on cryptocurrency-related scams and fraudulent ICOs in recent years, and this latest action serves as a warning to other celebrities and influencers who may be engaging in similar practices.
