Jake Paul, Lindsay Lohan, Soulja Boy and ‘specialist’ porn star Kendra Lust among celebrities charged over crypto scheme
US regulators have charged a raft of celebrities with being involved in an illegal cryptocurrency scheme.
Eight popular figures – including controversial YouTuber/boxer Jake Paul, actress Lindsay Lohan, musician Soulja Boy and highly popular ‘specialist’ porn star Kendra Lust – were tonight officially hit with charges from the US Securities and Exchange Commission (SEC).
Other public figures listed are singer Austin Mahone, rapper ‘Lil Yachty’, musician Ne-Yo and singer Aliaune Thiam – also known as Akon.
The charges allege they were paid to use their celebrity influence and social media platforms to promote two cryptocurrency tokens but failed to declare they were receiving payments.
It is understood that six of the accused have paid more than $400,000 to settle the charges, with the exception of Austin Mahone and Soulja Boy.
The SEC said the eight were accused of promoting BTT and TRX “without disclosing that they were compensated for doing so and the amount of their compensation”.
The mastermind behind the scheme is, says the SEC, Tron founder Justin Sun who has also been accused of wash trading and “orchestrating a promotional campaign in which he and his celebrity promoters hid the fact that the celebrities were paid for their tweet”.
“This case demonstrates again the high risk investors face when crypto asset securities are offered and sold without proper disclosure,” SEC Chair Gary Gensler said.
“Sun and his companies not only targeted US investors in their unregistered offers and sales, generating millions in illegal proceeds at the expense of investors, but they also coordinated wash trading on an unregistered trading platform to create the misleading appearance of active trading.”