US SEC Slaps Jake Paul, Lil Yachty with $400K+ fine for ‘illegal’ crypto promotion thrills fans “Put them all in jail for fraud”

Jake Paul is in trouble once again as Security and Exchange Commission (SEC) has accused The Problem Child of endorsing illegal cryptocurrencies. Nevertheless, Jake is not the only person charged with participating in the scheme; in fact, eight celebrities have been so far accused of violating the law.

Paul has had an incredibly wild few weeks. A crypto scheme charge has now been made on top of losing to Tommy Fury, nearly getting into a fight with Floyd Mayweather, trainer BJ Flores being shot during an armed robbery, and verbal confrontation with KSI. 

What crime have Jake Paul and seven other celebrities been accused of? 

The SEC in a news release on Wednesday addressed Jake Paul and seven other celebrities’ involvement in the illegal promotion of two cryptocurrencies on their social media platforms. According to SEC, they are charged for their participation in promotional activities “without disclosing that they were compensated for doing so and the amount of their compensation.”

Other than the YouTuber-turned-boxer, people who are also part of the illegitimate scheme are actress Lindsay Lohan, singer and rapper Soulja Boy, singer Austin Mahone, porn actress Kendra Lust, rapper Lil Yachty, singer Ne-Yo and rapper Akon.

Justin Sun, a China/Grenada-born cryptocurrency inventor and business leader, has already been prosecuted by the SEC for paying all of these celebrities to promote the tokens fraudulently.

According to SEC Chair Gary Gensler, Sun the owner of Tron Foundation, BitTorrent Foundation, and Rainberry, also manipulated his employees for the aforementioned criminal activities. 

“This case demonstrates again the high-risk investors face when crypto asset securities are offered and sold without proper disclosure,” said Gary.

The eight celebrities’ penalties have not yet been determined, but according to the SEC, Lohan, Paul, Akon, Ne-Yo, Lil Yachty, and Michele Mason are all paying fines of about $400,000 each to settle the case.

Khandaker Muntasir

877 articles

As a passionate UFC enthusiast, Khandaker Muntasir Hossain provides coverage of MMA, wrestling, and boxing on multiple platforms. With his deep knowledge of sports, he immerses readers in the excitement of various arenas, whether it's the octagon, squared circle, pitch, court, or ring. Through his writing and love for sports, he aims to motivate others to explore their own sporting interests and experience the magic that sports bring.


Leave a Comment