Jake Paul was one of 8 famous people that the Securities and Exchange Commission (SEC) said did something wrong by promoting a cryptocurrency scheme. The leader of the scheme is facing criminal charges.
The SEC (Securities Exchange Commission) released a statement saying that Paul and other celebrities, like Lindsay Lohan, Soulja Boy, Lil Yachty, Ne-Yo, Akon and Kendra Lust, were caught promoting TRX and BTT without mentioning that they got money for it or how much money they got.
Justin Sun, a businessman working with cryptocurrencies, is being investigated. He sold his own cryptocurrency brands, TRX and BTT, without registering it first. On top of this, he faked the market for those same cryptocurrencies.
Paul and some other famous people were accused of promoting a cryptocurrency brand, called Sun, without mentioning that it was actually paid advertising. This accusation came from an official complaint which was filed in the U.S. District Court for the Southern District of New York due to Paul’s recent losses against Tommy Fury in a boxing match.
The SEC’s Division of Enforcement Director, Gurbir S. Grewal said in a press release that Sun gave large sums of money to famous social media stars as payment for promoting their unregistered products/services. However, they also told these celebrities not to tell anyone how much money they were getting. According to Grewal, this type of behaviour does not follow the regulations set out by the federal securities laws and it doesn’t matter what labels Sun and others use.
In the end, Paul and other famous people (except Soulja Boy & Austin Mahone) decided to pay around $400,000 to make things right with the SEC (Securities and Exchange Commission) without accepting or rejecting what was found against them.
It looks like Paul brothers, Jake and Logan, are in a lot of trouble. A lawsuit has been filed against them and three other people related to a fraud dealing with cryptocurrency. According to reports, people lost thousands of dollars when they were scammed by this game.
