Lindsay Lohan and other celebrities charged with illegally touting crypto
The Securities and Exchange Commission has charged eight celebrities, including actress Lindsay Lohan, with illegally promoting crypto.
The SEC announced the charges against Lohan and seven others on Wednesday, saying they touted the crypto asset securities Tronix and/or BitTorrent "without disclosing that they were compensated for doing so and the amount of their compensation." The other celebrities who were charged are YouTuber Jake Paul, rappers Soulja Boy and Lil Yachty, adult film star Michele Mason (a.k.a. Kendra Lust), and singers Austin Mahone, Ne-Yo, and Akon.
The SEC also announced charges against entrepreneur Justin Sun, who allegedly "[orchestrated] a scheme to pay celebrities to tout TRX and BTT without disclosing their compensation" and was also charged with the "unregistered offer and sale of crypto asset securities" and fraudulent manipulation of the market. SEC Chair Gary Gensler said Sun "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." These celebrities were allegedly directed not to disclose their compensation.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Other than Soulja Boy and Austin Mahone, all of the celebrities agreed to pay a total of more than $400,000 to settle the charges without admitting to the allegations, the SEC said.
Kim Kardashian previously faced similar charges last year of touting a crypto asset security without disclosing that she had been paid for the promotion. She agreed to settle those charges and pay over $1.26 million. Gensler said at the time that Kardashian's case "serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities."
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
Nuclear near-misses
The Explainer From technical glitches to fateful split-second decisions, the world has come to the brink of nuclear war more times than you might think
By Rebecca Messina, The Week UK Published
-
What is cloud seeding and did it cause Dubai's severe rainfall?
The Explainer The future is flooded
By Devika Rao, The Week US Published
-
American Airlines pilots are warning of a 'significant spike' in safety issues
In the Spotlight The pilot's union listed 'problematic trends' they say are affecting the airline's fleet
By Justin Klawans, The Week US Published
-
OJ Simpson, star athlete tried for murder, dead at 76
Speed Read The former football hero and murder suspect lost his battle with cancer
By Rafi Schwartz, The Week US Published
-
Momofuku's 'Chili Crunch' trademark uproar
Speed Read The company's attempt to own the sole rights has prompted backlash
By Rafi Schwartz, The Week US Published
-
Kevin Hart awarded Mark Twain Prize
Speed Read He is the 25th recipient of the prestigious comedy prize
By Peter Weber, The Week US Published
-
Is Downton Abbey set to return for a final film?
Speed Read Imelda Staunton reveals that a third movie may be in the pipeline
By Adrienne Wyper, The Week UK Published
-
'Oppenheimer' sweeps Oscars with 7 wins
speed read The film won best picture, best director (Christopher Nolan) and best actor (Cillian Murphy)
By Peter Weber, The Week US Published
-
'Rust' armorer convicted of manslaughter
speed read The film's cinematographer Halyna Hutchins was shot and killed by actor Alec Baldwin during rehearsal
By Peter Weber, The Week US Published
-
The Beatles are getting 4 intersecting biopics
Speed Read Director Sam Mendes is making four separate movies, each told from the perspective of one band member
By Peter Weber, The Week US Published
-
Taylor Swift to Miley Cyrus: female artists dominate 2024 Grammys
Speed Read SZA, Phoebe Bridgers and Lainey Wilson were also among the winners at LA gala
By Arion McNicoll, The Week UK Published