According to various international media, the actress and singer Lindsay Lohan, the youtuber Jake Paul and other celebrities have been charged with fraud after improperly promoting Tronix cryptocurrencies, which are offered by Justin Sun’s Tron company.
According to the information, the Securities and Exchange Commission (SEC) accused Lindsay and the other stars for not reporting that they received payments to promote the tokens, which is why the actress and the other defendants must pay $400,000, including fines, as well as return the money they received for said promotion.
As dictated by the American body that controls the stock market, the celebrities traded the assets without having registered with the corresponding authorities and tried to manipulate the Tronix brokerage.
Through their social networks, celebrities promoted these companies, so by not reporting that their post had been paid or sponsored by the Sun company, they had to pay the fine and repay the payment they received to resolve their legal situation.
On the other hand, the SEC also claimed that Justin Sun and his companies offered and sold the cryptocurrencies as investments using unregistered “bounty programs” that led interested parties to promote the tokens on social networks, join and recruit others, for what the businessman also faces a complaint.
Sun and others used old tricks to mislead and harm investors by first offering securities without meeting registration and publicity requirements and then manipulating the market for those same securities. At the same time, he paid celebrities with millions of social media followers to promote the unrecorded offers while specifically ordering them not to disclose their compensation.
In the case of Lindsay Lohan, a spokesperson reported that the actress was contacted in March of last year and that she was unaware of the obligation to report advertising. However, the protagonist of mean girls agreed to pay a fine to resolve the issue.