The illegal scheme to promote cryptocurrencies for which celebrities such as Lindsay Lohan and Jake Paul were fined

regulatory authorities of USA Charges have been filed against eight celebrities, including Lindsay Lohan and Jake Paul, for participating in an illegal cryptocurrency trading scheme.

Public figures used their social networks to do promotion of two digital currency traders without disclosing that they were paid to generate publicity.

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The charges were presented by the Commission of US Securities and Exchange (SEC)according to a statement published on Wednesday.

In the case of lohan and paul have made a payment to have the charges dropped without admitting guilt.

The other celebrities (and their legal figures) charged are:

All are accused of illegally promoting the firms TRX and MTB “without disclosing that they were compensated for doing so and the amount of their compensation,” the SEC said.

All the celebrities, apart from Soulja Boy and Mahone, have collectively paid more than US$400,000 to settle the charges.

Lohan, best known for her role in the 2004 film “Mean Girls,” had 8.4 million followers on Twitter when she posted a message asking her followers to invest.

The 36-year-old actress, who according to the documents that indicate her is a resident of Dubai, United Arab Emirates, paid $10,000 to the SEC and another $30,000 in penalties.

To Paul, who is a famous youtuber, boxer and resident of Puerto Rico, he was ordered to pay more than $100,000.

Jake Paul paid to avoid the charges without pleading guilty. (GETTY IMAGES).

Justin Sun’s involvement

Justin Sun, a cryptocurrency investor and diplomat from the Caribbean island nation of Grenada, is also charged with fraud by manipulating the business activity of two companies in a scheme dubbed “wash trade” to inflate prices.

Sun, who was born in China and is a protégé of Alibaba founder Jack Ma, is known for having paid $4.6 million to have dinner with investor Warren Buffett.

He is accused of “orchestrating a promotional campaign in which he and his celebrity promoters concealed the fact that celebrities were paid for their tweet,” the SEC added in its press release.

your companies, Tron Foundation Limited, BitTorrent Foundation Ltd. and Rainberry Inc.. (formerly BitTorrent), are also part of the scheme.

“This case again demonstrates the high risk investors face when crypto asset securities are offered and sold without proper disclosure,” said SEC Chairman Gary Gensler.

Source: Elcomercio