- SEC sues YouTube personality Jake Paul for illegally touting cryptocurrencies.
- Jake Paul paid-promoted TRX and/or BTT, Tron Founder Justin Sun’s crypto without disclosing the information to the public.
- Justin Sun has been sued by the SEC for potential fraud and market manipulation.
Following a lawsuit against the Tron founder, Justin Sun, the Securities and Exchange Commission (SEC) has its focus on celebrities connected to the crypto company. YouTube personality Jake Paul has joined the list for “illegally touting” cryptocurrencies.
According to a report, Jake Paul is being sued by the SEC for promotion of cryptocurrencies, “TRX and/or BTT” which are both connected to Tron founder Justin Sun. Subsequently, Paul was alleged of partaking in paid promotion of the assets without disclosing those payments to the public.
According to the SEC, Paul had “illegally touted,” the cryptocurrencies, “TRX and or BTT” while refraining from sharing that he was paid for his endorsement. Additionally, the SEC has a list of several celebrities that they have connected with the lawsuit of Sun cryptocurrencies and Paul’s name is the latest addition to it.
Furthermore, the US regulatory lawsuit against Tron Founder Justin Sun is for potential fraud and market manipulation. The SEC calls Sun’s orchestration of the unregistered offer and sale as manipulative trading and unlawful touting of crypto asset securities.
To note, SEC accuses Sun of being, “engaged in a scheme to distribute billions of TRX and BTT to the public while also creating active secondary markets on which TRX and BTT could be traded.”
Youtuber Coffeezilla responded positively in a tweet to SEC’s actions. His tweets says:
Good. Influencer scams will stop when it starts hurting their wallets.
Crypto Twitter was seen responding with mixed reactions. Some are in favor of the SEC’s current action while still being worried about the future of the crypto if the SEC keeps being rampant in the coming days.