The Securities and Exchange Commission (SEC) has announced charges against a group of celebrities, including actor Lindsay Lohan and boxer Jake Paul, in connection with a cryptocurrency promotion scheme. Also included in the charges are a group of rappers and R&B stars, including Soulja Boy, Akon, and Lil Yachty.
The SEC alleges that the celebrities promoted the cryptocurrency offering without disclosing that they were paid to do so. The SEC claims that the group received millions of dollars in exchange for promoting the cryptocurrency offering on their social media accounts.
According to the SEC, the celebrities violated securities laws by failing to disclose that they were being paid to promote the cryptocurrency offering. The SEC alleges that the group’s promotion of the cryptocurrency offering created the false impression that it was a safe and profitable investment opportunity.
The SEC has charged the celebrities with violating the anti-touting provisions of the federal securities laws. The SEC seeks the disgorgement of ill-gotten gains, penalties, and injunctive relief.
The charges against the celebrities are a reminder of the risks associated with investing in cryptocurrency offerings. Investors should be cautious when investing in cryptocurrency offerings and should conduct thorough due diligence before making any investment decisions.
