Lindsay Lohan, Jake Paul, Ne-Yo and More Charged In Crypto Endorsement
Several celebrities who touted Tronix cryptocurrency are having to pay fines after the Securities & Exchange Commission (SEC) uncovered cases of fraud and unregistered securities related to the company. Lindsay Lohan, social media personality Jake Paul, Austin Mahone, Lil Yachty, Soulja Boy, Ne-Yo, and Akon are all being charged along with Tronix crypto founder Justin Sun. Sun is being accused of “manipulating the trading activity of the two tokens, creating the appearance of active trading when it did not exist.”
You might be thinking, but how were the celebrity endorsers supposed to know that? Well they are in trouble for endorsing Tronix without “disclosing that they were compensated for doing so and the amount of their compensation.” All except for Soulja Boy and Mahone agreed to pay a collective $400,000 to settle charges without admitting or denying guilt.
Other celebs were in trouble for endorsing FTX crypto currency a few months ago. Tom Brady, Steph Curry and others were named in a class action lawsuit pertaining to that company.