Actress Lindsay Lohan, rapper Akon and singer Ne-Yo have been compelled to pay tens of 1000’s of {dollars} to settle claims they promoted crypto investments to their social media followers with out disclosing they have been being paid to take action.
The group of celebrities, which additionally included rapper Lil Yachty, boxer and web persona Jake Paul and grownup movie performer Michelle Mason, agreed to pay greater than £325,000 ($400,000) to the US Securities and Exchange Commission (SEC).
The celebrities have been paid to advertise crypto corporations Tronix and BitTorrent to their hundreds of thousands of followers on social media.
None of the celebrities who paid fines admitted or denied the SEC’s findings.
Two different well-known figures, rapper Soulja Boy and pop singer Austin Mahone, didn’t attain a settlement with the SEC.
A spokesperson for Ms Lohan, who introduced she was pregnant final week, mentioned the actress was contacted in March 2022 and on the time was unaware of the requirement to reveal cost for promotion and agreed to pay a advantageous.
She returned the £8,141 ($10,000) she was paid plus curiosity and paid a £24,425 ($30,000) advantageous.
Representatives for the opposite celebrities both declined to remark or didn’t return requests for remark.
Major public figures together with Matt Damon, Tom Brady and Reese Witherspoon have used their affect and big social media following to advertise cryptocurrencies lately.
But it’s unlawful to take action with out disclosing that they’re being paid.
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This has landed some massive names in hassle with US regulators.
Reality tv star Kim Kardashian agreed to pay a £813,635 ($1m) advantageous final yr to settle federal prices after she advisable Ethereum Max tokens with out disclosing she was paid to take action.
Actor Steven Seagal was banned from selling investments for 3 years and compelled to pay a £244,102 ($300,000) advantageous as a part of an analogous settlement in 2020.
Source: information.sky.com”