NATIONAL NEWS

Lindsay Lohan, other celebs settle with SEC over crypto case

Mar 22, 2023, 3:12 PM

FILE - Actress Lindsay Lohan appears at the Christian Siriano Fall/Winter 2023 fashion show in New ...

FILE - Actress Lindsay Lohan appears at the Christian Siriano Fall/Winter 2023 fashion show in New York, Feb. 9, 2023. The Securities and Exchange Commission said Wednesday, March 22, that Lohan, rapper Akon and several other celebrities have agreed to pay tens of thousands of dollars to settle claims that they promoted crypto investments to their millions of social media followers without disclosing they were being paid to do so. (Photo by Charles Sykes/Invision/AP, File)
Credit: Charles Sykes/Invision/AP

(Photo by Charles Sykes/Invision/AP, File)

LOS ANGELES (AP) — Actress Lindsay Lohan, rapper Akon and several other celebrities have agreed to pay tens of thousands of dollars to settle claims they promoted crypto investments to their millions of social media followers without disclosing they were being paid to do so.

Lohan, Akon, recording artists Ne-Yo, and Lil Yachty, boxer and internet personality Jake Paul, and adult film performer Michele Mason all agreed to pay more than $400,000 combined in disgorgement, interest and penalties to settle the claims, the Securities and Exchange Commission said Wednesday.

None admitted or denied the SEC’s findings as part of the settlement. Two other celebrities named in the SEC’s complaint, rapper Soulja Boy and pop singer Austin Mahone, did not reach a settlement with the SEC, the agency said.

In response to a request for comment, Lohan’s publicist Leslie Sloane said the actress was contacted in March 2022, was unaware of the disclosure requirement, and agreed to pay a fine to resolve the matter. Lohan, who last week announced she is pregnant, was called to give up the $10,000 she was paid, plus interest, and pay a $30,000 fine, according an SEC complaint.

A spokeswoman for Paul declined to comment. Emails left with representatives for the other celebrities named in the SEC complaint weren’t immediately returned Wednesday.

In the complaint filed by the SEC in federal court in New York, the agency claims the celebrities were paid to promote Tronix (TRX) and BitTorrent (BTT), both crypto asset securities that were offered for sale by three companies owned by Justin Sun, a Chinese national. Sun is the permanent representative of Grenada to the World Trade Organization and may be living in Singapore or Hong Kong, according to the complaint.

Starting at around August 2017, Sun allegedly offered to sell billions in the unregistered securities and engaged in manipulative trading, while also creating secondary markets on which Tronix and BitTorrent could be traded, according to the complaint.

“Although the celebrities were paid to promote TRX and BTT, their touts on social media did not disclose that they had been paid or the amounts of their payments,” according to the complaint. “Thus, the public was misled into believing that these celebrities had unbiased interest in TRX and BTT, and were not merely paid spokespersons.”

Many Kim Kardashian agreed to pay a $1 million fine to settle federal charges that she recommended Ethereum Max tokens, a crypto security, to her millions Instagram followers without making clear that she was paid to do so.

In 2020, actor Steven Seagal agreed to pay more than $300,000 as part of a similar settlement with the SEC, which also banned him from promoting investments for three years.

National News

Associated Press

Republicans emerge from their convention thrilled with Trump and talking about a blowout victory

MILWAUKEE (AP) — The last time Republicans gathered for a full convention, they were plagued by internal division and fear. Morale was near rock bottom. And the party’s presidential nominee showed little desire, or capacity, to add new voters to his political coalition. What a difference eight years make. The Republican officials, strategists and activists […]

43 minutes ago

Associated Press

Internet outage latest | Airlines, businesses hit by global technology disruption

An internet outage affecting Microsoft is disrupting flights, banks, media outlets and companies across the world, with problems continuing hours after the technology company said it was gradually fixing an issue affecting access to Microsoft 365 apps and services. Airlines in the United States, Europe, Australia and India were reporting problems, with some flights grounded. […]

2 hours ago

Associated Press

Stock market today: Asian shares sink, weighed down by Wall St tech retreat, China policy questions

Asian shares retreated Friday after a broad washout across Wall Street dragged U.S. stocks lower, and Hong Kong’s benchmark dipped more than 2% as investors remained wary over China’s plans for helping its ailing property sector. U.S. futures rose while oil prices declined. Chinese officials briefed reporters in Beijing on the outcome of a top-level […]

5 hours ago

Associated Press

FACT FOCUS: A look at claims made at the Republican National Convention as Trump accepts nomination

As former President Donald Trump accepted the Republican presidential nomination on Thursday he laid out his vision for running the country. He painted a dire picture of the state of the U.S. and outlined a range of actions he planned to take. But his comments were marked with a myriad of false and misleading information […]

5 hours ago

New York Yankees' Aaron Judge walks to first base during the fifth inning of a baseball game agains...

Associated Press

Judge and Ohtani are the MVP favorites, but there’s plenty of time left in baseball’s award races

Aaron Judge and Shohei Ohtani are the front-runners for baseball’s MVP awards, according to the oddsmakers. It’s only the All-Star break, but one or two clear favorites have emerged for several of the game’s top honors. With play set to resume again Friday, here’s a look at what the betting lines have to say, courtesy […]

6 hours ago

Dr. Max Rogers, the obstetrician-gynecologist at Grove Hill Memorial Hospital, poses for a photo Mo...

Associated Press

Alabama birthing units are closing to save money and get funding. Some say babies are at risk

GROVE HILL, Ala. (AP) — One of the last remaining birthing units in southern Alabama will close next month to qualify for federal funding that will save the hospital’s emergency services, but doctors warn the move may cost newborns and pregnant women essential access to obstetric care. Nestled in rural Clarke County, the small, nonprofit […]

6 hours ago

Lindsay Lohan, other celebs settle with SEC over crypto case