(RepublicanReport.org) – A recent wave of charges from the Securities Exchange Commission (SEC) has likely discouraged many investors looking to potentially put money into cryptocurrencies. The SEC recently announced it was charging eight celebrities for allegedly committing fraud and violating Securities Law.
Today we charged crypto entrepreneur Justin Sun and three of his wholly-owned companies for the unregistered offer and sale of crypto asset securities Tronix and BitTorrent.
— U.S. Securities and Exchange Commission (@SECGov) March 22, 2023
Among the eight celebs are big names such as DeAndre Cortez Way, also known as Soulja Boy, Ne-Yo, Akon, and Lindsay Lohan. Rounding out the wave of charges are Lil Yachty, Jake Paul, Austin Mahone, and Kendra Lust. The eight of them are all facing various SEC charges in connection with their promotion of cryptocurrencies such as Tronix and BitTorrent. The SEC claims the celebrities illegally promoted Tronix (TRX) and BitTorrent (BTT) “without disclosing that they were compensated for doing so.” Additionally, the SEC noted none of the eight people disclosed how much they received in exchange.
The list of charges came as part of a larger investigation into Justin Sun, a crypto entrepreneur, and his three companies; Rainberry Inc, BitTorrent Foundation Ltd, and Tron Foundation Limited. All of the celebrities except for Soulja Boy and Mahone have come to settlements totaling in excess of $400,000 with the SEC. According to the commission, the settlements include “disgorgement, interest, and penalties.” However, none of them have admitted guilt to or rejected the SEC’s charges.
The charges against these eight celebrities come as the cryptocurrency world continues to recover after powerhouses in the market like Bitcoin nosedived, costing investors millions, if not billions, of dollars. It all follows the collapse of FTX and the downfall and arrest of its founder Sam Bankman-Fried. The cryptocurrency was once valued at over $32 billion but faced a liquidity crisis in November.
Bankman-Fried did what he could to save his company but ultimately filed for bankruptcy. Not long after, hundreds of millions of dollars were allegedly stolen in a possible hack. All of this began with concerns over undisclosed solvency and leverage among Bankman-Fried’s companies.
With the relative newness of cryptocurrencies, it’s easy for people to become the victim of scams and schemes in the market, and more will likely pop up in the future. Anyone looking to invest should research and be more cautious in today’s exchange environment.
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