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Actress Lindsay Lohan, YouTuber Jake Paul And Others Charged For Illegal Crypto Scheme

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In a news release on Wednesday, the US Securities and Exchange Commission (SEC) charged eight celebrities, including actress Lindsay Lohan and YouTuber Jake Paul, for participating in an illegal crypto scheme. The celebrities were accused of using their social media platforms to promote two crypto tokens, TRX and BTT, without disclosing that they were being paid to do so.

The SEC also charged crypto investor and diplomat Justin Sun for manipulating the trading activity of the two tokens to make it appear as if they were actively being traded in a fraudulent scheme known as “wash trading.” Sun’s companies – Tron Foundation Limited, BitTorrent Foundation Ltd, and Rainberry Inc (formerly BitTorrent) – were also charged as part of the scheme.

SEC Chair Gary Gensler emphasized the high risk that investors face when crypto asset securities are offered and sold without proper disclosure, adding that Sun and his companies not only targeted US investors in their unregistered offers and sales but also coordinated wash trading on an unregistered trading platform to create the misleading appearance of active trading.

All of the celebrities, except Soulja Boy and Austin Mahone, settled the charges and paid a total of over $400,000. Lohan paid $10,000 to the SEC and another $30,000 in penalties, while Paul was ordered to pay over $100,000.

Lohan, who is best known for her role in the 2004 film Mean Girls, had 8.4 million Twitter followers when she posted a message calling for her followers to invest. The 36-year-old actress, according to charging documents, is a resident of Dubai in the United Arab Emirates. Paul is a resident of Puerto Rico and is a YouTuber and boxer.

Victoria Philip is not only a Journalist but also a fiction writer and script writer. She is popularly known on Facebook as Onyekachi Ikeh #fromyourfastfingers You can reach her on this number 08135853903

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