Lindsay Lohan, Jake Paul and other celebrities charged $400,000 for violating crypto rules

Have you heard about crypto influencers being charged for promoting cryptocurrencies without disclosing their payouts? Among the list of influencers fined for violating crypto advertising rules are Jake Paul, Lindsay Lohan, and musician DJ Khaled, all of whom were charged $400,000 each. The US Securities and Exchange Commission (SEC) announced the violation of the “anti-touting” provisions of federal securities laws, which prevent public figures from promoting securities to their large followings without disclosing payment.

The three celebs promoted Centra Tech, a cryptocurrency start-up that was proven to be a fraudulent scheme, on their social media accounts without disclosing their payments. DJ Khaled and Floyd Mayweather were also involved in promoting the unregistered ICO, but the latter settled the lawsuit with the SEC in 2018.

This latest event reinforces the importance of transparency in endorsing cryptocurrency. Given their large followings, celebrities have a significant impact on people’s decisions to invest in certain coins or tokens. Thus, it’s crucial that they disclose any payment they receive for promoting such currencies.

The rise of cryptocurrencies has brought about an array of opportunities and risks, so it’s important for anyone to be vigilant about their investments. Various countries are implementing regulations to protect investors; however, it’s also important for people to educate themselves about cryptocurrencies before investing their money.

In summary, this news article highlights the celebrities who were fined for violating cryptocurrency advertising regulations and emphasizes the significance of transparency in crypto promotion. The article also underscores the importance of educating oneself before investing in cryptocurrencies.