- The Securities and Exchange Commission charged eight celebrities for touting TRX.
- Crypto Mogul Justin Sun was accused of fraud and wash trading, among other violations.
- Tron (TRX) dipped by 7%, while Huobi (HT) plummeted by 9% in the last 24 hours.
The Securities and Exchange Commission (SEC) filed a complaint against Justin Sun, the Chinese crypto mogul who owns multiple enterprises, including Tron (TRX), BitTorrent (BTT), and Huobi (HT). As if that wasn’t enough, Mr. Sun is rumored to have lost his Grenada citizenship, which would also remove the ‘His Excellency’ title from his full name, if true.
On top of that, Gary Gensler and the SEC simultaneously charged eight other celebrities for the “illegal promotion” of unregistered crypto securities, all related to Sun’s crypto empire. According to the official statement, the sale violated Section 5 of the Securities Act.
Multiple celebrities tackled by the SEC
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The celebrities targeted in the SEC’s complaint are as follows:
- Lindsay Lohan
- Jake Paul
- Soulja Boy
- Lil Yachty
- Ne-Yo
- Akon
- Kendra Lust
- Austin Mahone
All the above famous faces agreed to pay a $400,000 fine for illegally promoting Tron (TRX) and other related cryptocurrencies on social media. Following the news, Jake ‘Problem Child’ Paul, the brother of the controversial YouTuber Logan Paul, was roasted on Twitter by various media personalities. The boxer reportedly lashed out at a journalist after being asked inconvenient questions.
Crypto Scammers United FC: The Challenge
As more celebrities and athletes get into trouble endorsing pump-and-dump schemes and unregistered securities, the aftershocks of the FTX-infused earthquake are still easily seen.
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At the end of 2022, the Miami Heat had to change the name of their home venue, as FTX had reserved the rights to the arena name until 2028. Iconic boxer Floyd Mayweather Jr. and famed socialite Kim Kardashian recently evaded the EMAX controversy by paying a fee of $1.26 million to the SEC.
With the ongoing roast on Crypto Twitter, Chill Pill, a crypto enthusiast and the host of The Cre8ors talk show came up with a fun satirical challenge for the community. “Build a better team than me. I challenge you”, he says as he draws up a strong line-up of downtrodden, corrupt, or simply absent-minded crypto entrepreneurs.
The crypto scammer all-star lineup includes two main goal scorers – Sam Bankman-Fried and Do Kwon, a shady crypto entrepreneur whose evasive tactics ended yesterday. Other “players” in the midfield range include both the Paul brothers and Caroline Allison of Alameda Research. Su Zhu of Three Arrows Capital (3AC), controversial crypto YouTuber BitBoy, Shkreli, and Lindsay Lohan are on the defensive line.
On the Flipside
- Six out of eight celebrities targeted in the legal complaint by the SEC have agreed to pay the $400,000 fine without admitting guilt.
Why You Should Care
The U.S. Securities and Exchange Commission (SEC) aims to curb the promotion of unregistered securities and dubious cryptocurrencies. This bold move by the SEC is part of the scrupulously planned crypto crackdown.
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