Jake Paul Settles Crypto-Related Charges with the SEC
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Social media star and boxer Jake Paul has recently settled crypto-related charges with the Securities and Exchange Commission (SEC). Paul had initially been hired by blockchain network Tron to promote a new digital currency, though he had allegedly failed to reveal he was being paid to engage in the promotion.
Jake Paul and the SEC Settle Their “Differences”
The SEC says that this goes against present securities laws. If you are granted payment for taking part in a crypto or token-based promotion, you must reveal this data to your fans and followers. Discussing the present case against Tron and the numerous celebrities it paid to endorse its product(s), SEC head Gary Gensler explained in a statement:
This case demonstrates again the high-risk investors face when crypto asset securities are offered and sold without proper disclosure. As alleged, 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. 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.
Paul is not the only celebrity being targeted by the federal financial agency. Among the others is Lindsay Lohan, who also took part in Tron’s online promotion. It’s alleged in lawsuit documents that the actress and former child star was paid roughly $10K to promote Tronix tokens on Twitter, though she failed to let her social media followers know she had received compensation. A spokesperson for Lohan said that she was unaware that she was required to disclose this information and that she’s agreed to pay a fine to resolve the matter.
It’s estimated that the fines Paul paid exceeded $400K. In other news, Paul is claiming to have at one time taken a hallucinogen with football star Aaron Rodgers. In an interview with FOX News, Paul said:
Aaron and I were together when we did the ayahuasca. He’s more publicly known for speaking about it, but I was actually there with him when we did it. We spent the week there doing it. [We] share that similarity in terms of spirituality and reflecting and going into the deepest parts of the mind.
The Agency Is Going After Every Crypto Company, It Seems
It’s unclear if the present SEC case against Tron is valid or if it’s just another attempt (in a long string of attempts) to bring the crypto space down.
Not long ago, the SEC forced Kraken to part with a $30 million fine and end its staking activities and services. It also sent a Wells notice to Coinbase letting it know it could likely face charges.
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