The US Securities and Exchange Commission said Wednesday that it would accept deals from celebrities, including Lindsay Lohan, who promoted cryptocurrency without disclosing that they were paid for their services.
“On February 11, 2021, Lohan, a well-known actress, singer, and internet personality, promoted a crypto asset security being offered and sold on social media.” said the SEC in a cease and desist order. “Lohan did not disclose that the entity that offered and sold it to the public paid her to advertise said security.”
Lohan, a 36-year-old Dubai resident, was awarded $10,000 for a tweet promoting tokens for cyber banker Justin Sun’s Tron Foundation Limited. The “Mean Girls” star was ordered to turn over the ill-gotten funds from her and pay a fine.
“Defendant shall pay a repayment of $10,000, pre-judgment interest of $670, and a civil money penalty in the amount of $30,000 to the Securities and Exchange Commission,” the SEC wrote.
Social media star and boxer Jake Paul made more than $25,000 promoting Justin Sun’s company to his 3.8 million Twitter followers a day after Lohan sent her troubling tweet.
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The feds said it’s agreed to deliver that money with interest collected, plus “a civil monetary penalty in the amount of $75,057.”
Rapper Little Yachty, whom Paul mentioned in his tweet, joins musicians Ne-Yo, Austin Mahone and Akon on the SEC’s list of celebrities who “illegally” promoted Justin Sun’s crypto brand.
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Musicians Little Yachty, Ne-Yo, Akon and Austin Mahone were also on the SEC’s list of celebrities who “illegally” promoted Justin Sun’s crypto brand.
DeAndre Cortez Way, better known as the “Booty Meat” rapper Soulja Boy, was also SEC appointed for surreptitiously sending sponsored cryptocurrency tips to his 5.2 million Twitter followers in January 2021.
“With the exception of Cortez Way and Mahone, the celebrities charged today have agreed to pay a total of more than $400,000 in repayment, interest, and penalties to settle the charges, without admitting or denying the SEC’s findings,” the SEC said.
Sun, a 32-year-old Chinese cryptocurrency entrepreneur who attended the University of Pennsylvania, retired as CEO of Tron at the end of 2021 to become Grenada’s ambassador to the World Trade Organization. At that time, your net worth was estimated at $300 millionaccording to Entrepreneur.
SEC misstatement charges were filed against Sun and its trio of wholly owned companies: Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc.