The cryptocurrency industry is no new to controversy, and the most recent incident involves a number of well-known figures. A number of celebrities, including Lindsay Lohan, Akon, Ne-Yo, Lil Yachty, and others, have been charged for promoting digital tokens while concealing their participation in a shady scheme. It was claimed that famous people manipulated the trading volume of BitTorrent (BTT) and Tronix (TRX).
This alarming information comes after Chinese businessman Justin Sun was accused of hiding payments to these celebrities by the Securities and Exchange Commission (SEC) of the United States. According to reports, the celebrities did not disclose to their millions of followers that they were funded to promote Sun’s cryptocurrencies.
The SEC fined the accusers and assessed civil penalties but did not file any criminal charges against the culprits. Despite the fact that it’s common for celebrities to advertise goods or services on social media, there are rigorous guidelines for disclosure when there is monetary gain. Sun is accused by the SEC of breaking these rules by paying off prominent figures to increase his cryptocurrency investments without providing adequate transparency.
What does this Case Underscore?
This tale might shock individuals who are unfamiliar with the world of cryptocurrencies. Nonetheless, it serves as another warning of the necessity for caution and vigilance for those who have closely observed the sector. This case raises concerns about the morality of celebrity endorsements in addition to their financial implications.