Several celebrities have found themselves in the middle of federal charges against Justin Sun, a “crypto asset entrepreneur” who owns and operates three different crypto companies. The charges primarily include fraud and security law violations.
Sun is the sole owner of 3 crypto companies – Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. He’s been accused by the Securities and Exchange Commission of the “unregistered offer and sale of crypto asset securities Tronix (TRX) and BitTorrent (BTT)”. Basically, Sun was selling security assets that he wasn’t lawfully able to sell, and he made millions of dollars doing it.
In the press release from the SEC, it was disclosed that Sun was also charged with engaging in extensive “wash trading” of TRX, to make it look like the activity, and thus its overall value, was much higher than it actually was.
On top of that, Sun is also accused of enlisting the aid of 8 different celebrities with millions of social media followers to help his companies grow. They did that by promoting the crypto assets, but not disclosing that they were paid to do so, and never saying how much they received in compensation.
Those eight celebs are:
- DeAndre Cortez Way (Soulja Boy)
- Shaffer Smith (Ne-Yo)
- Aliaune Thiam (Akon)
- Miles Parks McCollum (Lil Yachty)
- Lindsay Lohan
- Jake Paul
- Michele Mason (Kendra Lust)
- Austin Mahone
The press release did point out, however, that each celeb, with the exception of Mahone and Cortez Way, agreed to pay more than “$400,000 in disgorgement, interest, and penalties to settle the charges, without admitting or denying the SEC’s findings.”
All quotes in this report came straight from the SEC press release, which you can read in its entirety by [clicking here].
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Soulja Boy, Ne-Yo, Akon & More Charged in Multi-Million Dollar Crypto Scheme was originally published on wzakcleveland.com