CelebritiesLindsey Lohan
The US Securities and Exchange Commission (SEC) charged Chinese cryptocurrency entrepreneur Justin Sun with fraud on Wednesday.
Actor Lindsey Lohan, rapper Akon, Soulja Boy and several other celebrities were also charged in the scheme for illegally promoting Sun’s crypto assets.
The ‘Wild West’ of Misconduct
Sun and its companies Tron Foundation, BitTorrent Foundation and Rainberry were accused of conspiring to distribute billions of crypto assets known as Tronix (TRX) and BitTorrent (BTT) without registering with the proper authorities.
Sun was also accused of artificially inflating turnover.
Celebrities were accused of hiding the fact that they were paid to promote TRX and BTT on their social media accounts, as well as tricking the public into thinking they had an “unbiased interest” in the currency.
The SEC said in its complaint that Sun’s activities generated tens of millions of dollars in illegal profits at the expense of other investors.
SEC Chairman Gary Gensler said in a statement that “this case again demonstrates the high risk investors face when cryptocurrency securities are offered and sold without adequate disclosure.”
After the collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange in November, the SEC has stepped up its efforts to crack down on the crypto industry.
Gensler described the crypto ecosystem as an “Old West” riddled with misconduct.
Source: DW
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.