Shulou(Shulou.com)11/24 Report--

March 23, Wednesday (local time), the Securities and Exchange Commission (SEC) announced that eight celebrities were charged with encrypted currency fraud, including Sun Yuchen and his supporters of encrypted asset companies Tronix and BitTorrent.

SEC filed a lawsuit against Sun Yuchen and his company, accusing him of illegal securities sales, fraud and market manipulation. The agency also accused seven other celebrities of "illegally peddling Tronix and BitTorrent, but did not disclose how much or how much they received as a result."

Celebrities facing charges include actress Lindsay Lohan, social media celebrity Jake Paul and rappers Soulja Boy and Lil Yachty.

SEC accused Sun Yuchen and his company of "devising a plan to pay celebrities to sell Tronix and BitTorrent, but did not disclose how much they were paid for it."

SEC claimed that, with the exception of Soulja Boy and singer Austin Mahone, the people charged on Wednesday agreed to pay a total of more than $400,000 in interest and fines to settle the charges, but they neither admitted nor denied SEC's findings.

According to SEC, Sun Yuchen and his company "fraudulently manipulated the Tronix secondary market through extensive reshuffle trading, which involves buying and selling securities at the same or almost the same time to make them appear active in trading without actual change in beneficiary ownership."

Gary Gary Gensler, chairman of SEC, said the allegations highlight the risks investors face when the company fails to commit to proper disclosure.

He added: "Sun Yuchen and his company not only made millions of dollars in illegal gains against US investors in the process of illegally selling securities at the expense of investors, but also coordinated reshuffle trading on an unregistered trading platform to create the misleading appearance that Tronix trading was active. Sun Yuchen and other celebrity salesmen planned a promotion to conceal the fact that celebrities pay for tweets, thus further enticing investors to buy Tronix and BitTorrent. "

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