Jake Paul and five other celebrities settled for a combined $400,000 with the SEC after being hit with crypto violations.
The violations stem from the SEC charging Tronix founder Justin Sun with fraud and unregistered securities charges.
The SEC alleged that Sun manipulated the trading activity of both Tronix and BitTorrent.
Sun allegedly induced investors to purchase to crypto tokens by “orchestrating a promotional campaign in which he and his celebrity promoters hid the fact that the celebrities were paid for their tweet,” SEC chair Gary Gensler said in a statement.
“Sun and his companies not only targeted U.S. investors in their unregistered offers and sales, generating millions in illegal proceeds at the expense of investors, but they also coordinated wash trading on an unregistered trading platform to create the misleading appearance of active trading in TRX,” Gensler also said.
“Sun further induced investors to purchase TRX and BTT by orchestrating a promotional campaign in which he and his celebrity promoters hid the fact that the celebrities were paid for their tweets.”
Actress Lindsay Lohan, musicians Soulja Boy, Ne-Yo, Akon, Austin Mahone, Lil Yachty and adult actress Kendra Lust are the other celebrities listed in the suit.
Soujla Boy and Mahome are the only two celebrities that were not included in the settlement, which was not an admission of guilt.
Paul is coming off a loss to Tommy Fury in February.
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