Summary:

• The SEC is charging Justin Sun, a crypto founder and diplomat, over crypto violations, including manipulating the public into thinking that two non-existing tokens were actively trading.
• The commission has accused Sun of unregistered offer and sales of crypto offerings.
• Sun used his prominence to promote the tokens, TRX and BTT, and paid a number of celebrities to push it.

The Securities and Exchange Commission (SEC) has revealed that it is charging Justin Sun, a crypto founder and diplomat, over crypto violations.

As for Sun, the commission is accusing him of manipulating the public into thinking that two non-existing tokens, TRX and BTT, were actively trading. Also, he is facing a charge of unregistered offer and sales of crypto offerings.

In a statement, the SEC said that Sun’s case demonstrates the risk of shady crypto asset securities for investors. It added that the diplomat used his prominence to promote the tokens, while hiding the fact that it was a paid campaign.

Also read:
–NBA Star Fined $1.4 Million For Promoting Dubious Crypto Token
–Kim Kardashian forced to pay $1.26 million for part in crypto scam
–Socios.com sign Lionel Messi for $20 million as global brand ambassador.

According to a CNBC report, American rapper Soulja Boy, actress Lindsay Lohan, boxer Jake Paul,musician Austin Mahone, adult actress Michele Mason, known as Kendra Lust, musician Miles Parks McCollum, known as Lil Yachty, musician Shaffer Smith, also known as Ne-Yo, and musician Aliaune Thiam, also known as Akon, were all involved in the scheme. Only Soulja Boy and Mahone have not agreed to pay the collective $400,000 fine to settle the case.

The tokens were affiliated with Tron, making them seem legit, when they weren’t.

“Sun paid celebrities with millions of social media followers to tout the unregistered offerings, while specifically directing that they not disclose their compensation. This is the very conduct that the federal securities laws were designed to protect against regardless of the labels Sun and others used,” the SEC said.

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