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American Celebrities Agree to Pay Over $400k to Settle SEC Claims

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According to reports, American actress Lindsay Lohan, rapper Akon, and several other celebrities have agreed to pay a total of more than $400000 in liquidated damages, interest, an

American Celebrities Agree to Pay Over $400k to Settle SEC Claims

According to reports, American actress Lindsay Lohan, rapper Akon, and several other celebrities have agreed to pay a total of more than $400000 in liquidated damages, interest, and penalties, and have reached a settlement with the Securities and Exchange Commission (SEC) to promote TRX and BitTorrent to social media fans.

Six celebrities including Lindsay Lohan have agreed to pay $400000 to sell TRX or BTT and settle with the US SEC

In recent news, it was reported that American actress Lindsay Lohan, rapper Akon, and several other celebrities have agreed to pay a total of more than $400,000 in liquidated damages, interest, and penalties, and have reached a settlement with the Securities and Exchange Commission (SEC) to promote TRX and BitTorrent to social media fans.

What Is TRX and BitTorrent?

TRX is a blockchain-based decentralized platform that aims to create a free, global digital content entertainment system. BitTorrent, on the other hand, is a peer-to-peer file-sharing protocol that allows users to distribute large amounts of data effectively. Both TRX and BitTorrent are owned by the same company, TRON Foundation.

The Alleged Violations

According to the SEC, Lohan and Akon failed to disclose that they were sponsored to promote TRON’s initial coin offering back in 2018 on their social media accounts. The SEC claims that the celebrities violated the anti-touting provisions of the federal securities laws by failing to disclose that they were being paid for their promotions.
The SEC complaint stated that Lohan was paid $67,000, while Akon was paid $105,000 to promote the TRON ICO on their social media accounts. Other celebrities, including boxer Floyd Mayweather Jr. and musician DJ Khaled, were also previously charged with the same violations.

The Terms of the Settlement

Under the settlement terms, Lohan will pay $179,000, while Akon will pay $148,000 in total penalties, disgorgement, and interest. The other celebrities involved in the case have also agreed to similar settlements with the SEC.
As part of the settlement, the celebrities were ordered by the SEC to refrain from any future similar violations. They were also required to disclose any payments they receive in exchange for promoting cryptocurrency or other investment opportunities.

Conclusion

It is essential for individuals, especially celebrities with a large social media following, to disclose any payments received for promoting investment opportunities. Failure to do so could lead to legal consequences and tarnish their reputation. The SEC is vigilant about enforcing its regulations to promote transparency and protect investors.

FAQs

1. What is the TRX platform and BitTorrent protocol?
– TRX is a decentralized platform for digital content entertainment, while BitTorrent is a peer-to-peer file-sharing protocol.
2. What were the allegations brought against the celebrities by the SEC?
– The SEC alleged that the celebrities violated anti-touting provisions of the securities laws by failing to disclose their sponsorship to promote the TRON ICO.
3. What were the terms of the settlement reached by Lohan, Akon, and other celebrities?
– The celebrities agreed to pay penalties, disgorgement, and interest totaling over $400,000, and were ordered to disclose any future payments for promoting investment opportunities.
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