Jake Paul Sued by the SEC for Crypto Promotion
March 23, 2023 6:25 AM
U.S. regulators have filed a lawsuit against Jake Paul, a popular YouTuber, for allegedly encouraging the use of digital currency associated with Tron's founder, Justin Sun. Paul is also being accused by the SEC of paid advertising of Sun-related assets without disclosing such payments to the public.
The SEC has filed litigation against the Tron creator, thus the news comes at an interesting time. In particular, the US regulatory body is taking legal action against Sun for alleged fraud and market manipulation. They have shifted their focus to public figures associated with the cryptocurrency firm.
Youtube star Jake Paul is being sued by the Securities and Exchange Commission (SEC) for allegedly promoting cryptocurrency linked to Justin Sun for financial gain. Even more seriously, the lawsuit claimed that Paul and other celebrities hid the money they made from their endorsements.
Paul "illegally marketed," according to the SEC, "TRX and/or BTT," without disclosing that he was compensated for doing so. At the moment, Paul is one of several celebrities named in Tron founder Justin Sun's case against US regulators.
Meanwhile, Justin Sun, founder of Tron, is being sued by the SEC over numerous counts of fraud and market manipulation, as was disclosed today. Sun is accused of "orchestration of the unregistered offer and sale, manipulative trading, and unlawful touting of crypto asset securities," to quote the regulator's exact words.
Sun is also charged with "engaging in a plan to transfer billions of TRX and BTT to the public while also developing active secondary markets on which TRX and BTT may be sold," according to the lawsuit. The issue is evolving at this time.