In the wake of a legal action filed against Justin Sun, the founder of Tron, the attention of the Securities and Exchange Commission has shifted to high-profile individuals associated with the digital currency firm. Adding to the roster of personalities under scrutiny for unlawfully promoting cryptocurrencies is popular YouTube figure Jake Paul.
Paul accused of illicit crypto promotion
Jake Paul is in legal trouble as the Securities and Exchange Commission has taken action against him for his involvement in promoting digital currencies linked to Justin Sun, the founder of Tron. A report suggests that Paul’s endorsement of “TRX and BTT” was accompanied by undisclosed payments, which have drawn accusations of illicit promotion.
The Securities and Exchange Commission has accused Jake Paul of engaging in the unlawful promotion of the digital currencies “TRX and BTT” without disclosing that he received payment for his endorsement. Alongside several other high-profile individuals connected to the lawsuit against Tron founder Justin Sun’s cryptocurrencies, Paul has been added to the SEC’s list of names.
Moreover, a US regulatory body has filed a lawsuit against Tron’s founder, Justin Sun, accusing him of market manipulation and fraud. The SEC considers the conduct of Sun, who was responsible for organizing the unregistered offer and sale, to constitute manipulative trading and unlawful hyping of crypto asset securities.
Justin Sun’s alleged cryptocurrency scandal
The SEC alleges Sun was “involved in a plan to distribute billions of TRX and BTT to the public while also establishing active secondary markets on which TRX and BTT could be sold.” Sun denies the allegations made by the SEC.
According to reports, Coffeezilla, a YouTuber, tweeted a positive response to the actions taken by the Securities and Exchange Commission. The tweet reportedly said that the move was good and added that influencer scams would halt when individuals begin to feel the financial repercussions of their actions.
The recent actions of the SEC have sparked a range of responses on Crypto Twitter, with some expressing support for the regulatory body’s current measures. However, there are other concerns about the potential long-term impact on the cryptocurrency industry if the SEC continues to be aggressive in its enforcement efforts.
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