The U.S. Securities and Exchange Commission (SEC) charged Lindsey Lohan, Jake Paul, and six other celebrities for promoting cryptocurrencies without disclosing that they were being compensated for their endorsements.
The SEC alleged that these celebrities violated the anti-touting provisions of the federal securities laws by failing to disclose that they were paid to promote cryptocurrencies on social media. According to the SEC, they did not reveal the nature, scope, and amount of compensation they received for the promotions, violating investor-protection laws.
It is important to note that the allegations made by the SEC are still being litigated, and the defendants have not yet been found guilty of any wrongdoing.