SEC Charges Jake Paul and Lindsay Lohan for Crypto Promotions

The Securities and Exchange Commission (SEC) has recently charged a new batch of celebrities, including Jake Paul and Lindsay Lohan, for promoting crypto-related investments without proper disclosure. In addition to the two celebrities, the SEC also brought charges against Justin Sun and three of his companies.

The SEC alleged that these individuals promoted certain digital asset securities without properly disclosing their compensation or potential conflicts of interest in doing so. The regulator further stated that they have been actively monitoring similar promotions since 2017 when it issued its first warning about such activities.

According to the complaint filed by the SEC, both Paul and Lohan received payments from Sun’s Tron Foundation in exchange for promoting its cryptocurrency called TRON on social media platforms like YouTube and Instagram between December 2019 through February 2020. The regulator is seeking disgorgement plus interest as well as civil penalties from each defendant named in this case along with permanent injunctions preventing them from participating in future violations of federal securities laws.

This case serves as an important reminder to all investors that they should be aware of any potential conflicts when investing in cryptocurrencies or other digital assets before making a final decision on whether or not to invest their money into such products.