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SEC Accuses Crypto Giant Justin Sun And Lindsay Lohan Of Securities Law Violation

Press Releases Crypto News Bitcoinist SEC Accuses Crypto Giant Justin Sun And Lindsay Lohan Of Securities Law Violation

The US Securities and Exchange Commission (SEC) has recently announced that it has charged Justin Sun, a prominent crypto entrepreneur, and his three companies- Tron Foundation, BitTorrent, and Rainberry Inc, with allegedly conducting an unregistered sale of “crypto assets securities.”

The SEC alleges that Sun and his companies offered and sold Tronix (TRX) and BitTorrent (BTT) tokens to the public without registering these tokens as securities, following the regulatory agency’s crackdown on the crypto industry.

Lindsay Lohan And Celebrities Involved In SEC Case Against Crypto

In addition to the charges of unregistered offering and sale of crypto asset “securities” TRX and BTT, the SEC has also accused Justin Sun and his companies of alleged fraudulent activities related to TRX.

The SEC alleges that Sun and his companies engaged in extensive wash trading to “fraudulently manipulate” the secondary market for TRX. These allegations of wash trading involve the simultaneous buying and selling of the same crypto asset to make it appear that there is more trading activity than there is.

The regulatory agency has also accused Sun and his companies of incentivizing celebrities to promote TRX and BTT without disclosing their compensation.

SEC’s statement on the recent charges against Sun. Source: US SEC on Twitter.

The celebrities named in the charges are Lindsay Lohan, Jake Paul, DeAndre Cortez Way (Soulja Boy), Austin Mahone, Michele Mason (Kendra Lust), Miles Parks McCollum (Lil Yachty), Shaffer Smith (Ne-Yo), and Aliaune Thiam (Akon).

Another Crypto “Big Fish” On The SEC’s Radar

The SEC’s complaint alleges that Sun and his companies offered and sold TRX and BTT tokens as investments through multiple unregistered “bounty programs.” These programs allegedly directed interested parties to promote the tokens on social media, recruit others to its Tr

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Author: Ronaldo Marquez

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