Lindsay Lohan And Kae Paul Hit with SEC Charges Over Crypto Schemes

24 Mar 2023 20:40 IST

Updated On 24 Mar 2023 20:45 IST

It has been alleged that Kae Paul and Lindsay Lohan promoted an unregistered cryptocurrency offering. They have been charged by the US Securities and Exchange Commission (SEC), who say that they were paid to promote a cryptocurrency offering without telling anyone. According to the SEC, Lohan and Paul promoted the offering on social media, encouraging their followers to invest in the project without revealing that they had been compensated to do so.

The SEC claims that Lohan and Paul broke federal securities laws by not disclosing the compensation they received for promoting the cryptocurrency. To prevent Lohan and Paul from participating in future digital securities offerings, the SEC is seeking monetary penalties and injunctions.

Also Read: Airbit Club Founder Pled Guilty over One of the Biggest Scams in the History of Cryptocurrency! Check Out…

It is important to note that these allegations are just that and that Lohan and Paul have not yet responded to the claims made by the SEC. The case, on the other hand, serves as a reminder that social media promoters of cryptocurrencies or other digital assets may be subject to securities laws and may be required to disclose compensation for doing so.

What exactly is the picture?

US authorities have put charges on eight famous people, including Jake Paul and Lindsay Lohan, for their involvement in a duplicitous cryptocurrency scheme.

It is suspected that the celebrities endorsed two cryptocurrency tokens using their social media platforms without revealing that they were paid to do so.

Crypto tokens — In a crime known as wash trading, Justin Sun, a crypto investor and Grenada diplomat, is accused of manipulating the trading activity of the two tokens to make it appear as though they were actively being traded.
It is common information that Mr. Sun, a Chinese-born acolyte of Alibaba founder Jack Ma, once paid $4.6 million (£3.7 million) to dine with investor Warren Buffett.
Crypto Market down, will it lead to long-term correction?
According to the statement, Sun and his companies not only beleaguered US investors with their unregistered offers and sales, which give rise to the generation of millions in unlawful proceeds at the expense of investors, but they also synchronized wash trading on an unregistered trading platform to construct the presence of active trading.
Except for Mahone and Soulja Boy, the celebrities have all paid more than $400,000 to settle down the charges.
When she posted a message on Twitter advising her followers to invest, Lohan is best known for her role in the 2004 film Mean Girls and she ultimately had 8.4 million followers.
Cryptocurrency

SEC — In a crime known as wash trading, Justin Sun, a crypto investor and Grenada diplomat, is accused of manipulating the trading activity of the two tokens to make it appear as though they were actively being traded.
It is common information that Mr. Sun, a Chinese-born acolyte of Alibaba founder Jack Ma, once paid $4.6 million (£3.7 million) to dine with investor Warren Buffett.
Crypto Market down, will it lead to long-term correction?
According to the statement, Sun and his companies not only beleaguered US investors with their unregistered offers and sales, which give rise to the generation of millions in unlawful proceeds at the expense of investors, but they also synchronized wash trading on an unregistered trading platform to construct the presence of active trading.
Except for Mahone and Soulja Boy, the celebrities have all paid more than $400,000 to settle down the charges.
When she posted a message on Twitter advising her followers to invest, Lohan is best known for her role in the 2004 film Mean Girls and she ultimately had 8.4 million followers.
Cryptocurrency

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