Celebrities facing backlash by crypto promotion?
Which Celebrities Are Getting Backlash for Promoting Cryptocurrencies? Just two well-known Celebrities who have run into legal issues for promoting cryptocurrency on their social media profiles are Lindsay Lohan and Jake Paul. The most recent tweets from Lindsay Lohan’s account are Christmas-themed promos from December for “Pilk,” a frothy, creamy drink made with Pepsi and milk. Jake Paul The boxer and social media star was accused of promoting Mr. Sun’s cryptocurrency asset security in violation of the law. Who has been accused thus far? Justin Sun Justin Sun is an entrepreneur who goes by “His Excellency” on social media. He was accused of breaking securities laws while managing three cryptocurrency businesses. According to the Securities and Exchange Commission, despite not being a household name, he promoted his cryptocurrency initiatives, which included the digital coins TRX and BTT, by enlisting the support of famous people. Lindsay Lohan Lindsay Lohan used wording from Mr. Sun’s business Tron to publish, saying, “Very quick and no cost.” “Well done, @justinsuntron.” The S.E.C. claims she got $10,000 for posting about TRX. Akon Akon: The singer of “Smack That” received almost $42,000 worth of cryptocurrency in exchange for promoting TRX on social media. Along with being an avid fan of blockchain technology, he also has his own cryptocurrency, Akoin. Jake Paul Jake Paul: The boxer and social media star was accused of promoting Mr. Sun’s cryptocurrency asset security in violation of the law. Logan Paul, his brother, previously advertised a friend’s cryptocurrency, Dink Doink, without disclosing his personal relationship. Jake Paul’s representative declined to comment. The S.E.C. has also filed charges against singers Lil Yachty, Soulja Boy, Austin Mahone, Kendra Lust, and Ne-Yo. They all settled, save for Soulja Boy and Mr. Mahone. Who has previously reached a settlement with the SEC? Kim Kardashian Kim Kardashian: In 2021, she shared a picture of a cryptocurrency token on Instagram. She subsequently settled allegations that she had withheld payment for the post by paying $1.26 million. Floyd Mayweather Floyd Mayweather: He has backed a number of niche and frequently questionable cryptocurrency ventures. He settled allegations that he had improperly disclosed his compensation for promoting initial coin offerings in 2018 by paying more than $600,000. DJ Khaled DJ Khaled: After the S.E.C. discovered that he had concealed a $50,000 payment from Centra Tech, which he had referred to as a “Game changer,” the music producer agreed to pay more than $150,000. So what happened? The posts are obviously advertisements for Pepsi. Federal officials have expressed interest in her less celebratory 2021 tweet, whereby she pushed a cryptocurrency asset without revealing that she was compensated for the message. The star was not aware of the disclosure obligation, according to a representative for Ms. Lohan, and she consented to pay a fine after being contacted in March 2022. Eight celebrities, including Ms. Lohan, influencer Jake Paul, and rapper Soulja Boy, were charged by the Securities and Exchange Commission on Wednesday for engaging in illicit marketing of cryptocurrency asset securities without providing compensation disclosures. A total of $400,000. was agreed to by six of the celebrities as settlements. Well-dressed celebrities may not always offer wise advice on investments, particularly if they are endorsing a product behind closed doors, according to University of California, Los Angeles commercial law expert Andrew Verstein. […]
Celebrities facing backlash by crypto promotion? Read More »