The Securities and Exchange Commission (SEC) has charged several celebrities, including Lindsay Lohan and Jake Paul, for failing to disclose that they were paid to promote cryptocurrency. The SEC claims these celebrities received payments totaling $400,000 in exchange for promoting the crypto without disclosing it.
This is not the first time the SEC has cracked down on undisclosed promotional activities related to cryptocurrencies. In 2018, Floyd Mayweather Jr., DJ Khaled, and others were fined by the agency for similar violations of disclosure rules when promoting initial coin offerings (ICOs).
The latest charges against Lohan and Paul are part of an ongoing effort by regulators worldwide to ensure transparency in digital asset markets. It also serves as a reminder that anyone who promotes digital assets must comply with applicable securities laws or face serious consequences, such as hefty fines or even jail time if convicted of fraud-related offenses.
In addition, this case highlights how important it is for investors to do their research before investing in any asset – especially new ones like cryptocurrencies – so they can make informed decisions about where their money goes without being misled by celebrity endorsements or other forms of promotion, which may be misleading or incompletely disclosed.
Read more at CNN
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