The Securities and Exchange Commission (SEC) recently filed a complaint against Justin Sun, the Chinese crypto mogul and owner of several enterprises, including Tron, BitTorrent, and Huobi. The SEC accused Sun of violating Section 5 of the Securities Act by selling unregistered crypto securities. The SEC also charged eight celebrities for illegally promoting Sun’s crypto empire, including Lindsay Lohan, Jake Paul, and Soulja Boy. All celebrities agreed to pay a fine of $400,000 for their involvement in the promotion of Tron and other related cryptocurrencies on social media.
As the aftershocks of the FTX-infused earthquake continue to be felt, more celebrities and athletes are getting into trouble for endorsing pump-and-dump schemes and unregistered securities. The Miami Heat had to change the name of their home venue at the end of 2022 as FTX had reserved the rights to the arena name until 2028. Floyd Mayweather Jr. and Kim Kardashian also evaded the EMAX controversy by paying a fee of $1.26 million to the SEC.
To add to Sun’s troubles, rumors are circulating that he has lost his Grenada citizenship, which would remove the ‘His Excellency’ title from his full name if true. In response to the ongoing roast on Crypto Twitter, a crypto enthusiast came up with a satirical challenge for the community to build a better team than the lineup of downtrodden, corrupt, or absent-minded crypto entrepreneurs, including Sam Bankman-Fried, Do Kwon, and Caroline Allison of Alameda Research.
The SEC’s crackdown on unregistered securities and dubious cryptocurrencies is a bold move that aims to protect investors from fraudulent schemes. Six out of eight celebrities targeted in the legal complaint have agreed to pay the fine without admitting guilt. The celebrity involvement in the promotion of unregistered securities highlights the need for increased scrutiny and regulation of the crypto industry.
The SEC’s actions also raise questions about the role of celebrities in the promotion of cryptocurrencies. While their endorsements can raise awareness and attract new investors, they can also mislead the public and contribute to fraudulent activities. The SEC’s efforts to curb the promotion of unregistered securities and pump-and-dump schemes in the crypto industry are a step towards creating a more transparent and trustworthy ecosystem for investors.
