Timely, comprehensive, professional and accurate information and data to understand the latest information about blockchain, cryptocurrency and Bitcoin

FameEX Hot Topics | Justin Sun and Lindsay Lohan Face SEC Accusations of Violating Securities Laws in Cryptocurrency Industry

2023-03-23 12:01:40

Justin Sun, a cryptocurrency mogul and founder of the Tron blockchain platform, is facing allegations from the US Securities and Exchange Commission (SEC) of violating securities laws. According to the SEC, Sun and his companies offered and sold Tronix (TRX) and BitTorrent (BTT) tokens to the public without registering them as securities, which is required by law.The SEC has been closely monitoring the cryptocurrency industry, and Sun is the latest high-profile figure to come under its scrutiny. The charges against Sun and his companies don't stop at the unregistered offering and sale of TRX and BTT tokens, however. The SEC has also accused Sun and his companies of fraudulent activities related to TRX.

The regulatory agency claims that Sun and his companies engaged in wash trading to "fraudulently manipulate" the secondary market for TRX. Wash trading involves buying and selling the same asset simultaneously to create the appearance of greater trading activity than there actually is.In addition to the wash trading allegations, the SEC has accused Sun and his companies of incentivizing celebrities to promote TRX and BTT without disclosing their compensation. Actress Lindsay Lohan is one of the celebrities named in the SEC's allegations. According to the SEC, Sun and his companies violated federal securities laws by not disclosing the compensation received for promoting investments.If Sun and his companies are found guilty of these charges, they could face significant fines and other penalties. The SEC's actions against Sun and other players in the cryptocurrency industry are part of a broader effort to protect investors and ensure compliance with securities laws in the rapidly evolving world of cryptocurrencies.

As of this writing, it remains to be seen how the case will unfold. However, the allegations against Sun and his companies serve as a reminder that the cryptocurrency industry is not immune to regulatory oversight and that all players must comply with relevant laws and regulations.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

Other articles
Copyright © 2022-2023 FAMEEX.COM All Rights Reserved
FameEX APPMobile trading, anytime, anywhere