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  • Thursday, 29 February 2024
Lindsay Lohan, Lil Yachty, other stars to pay more than $400,000 in SEC crypto settlement

Lindsay Lohan, Lil Yachty, other stars to pay more than $400,000 in SEC crypto settlement

Actress Lindsay Lohan and rapper Lil Yachty are among a group of celebrities who have agreed to pay more than $400,000 in a settlement with the U.S. Securities and Exchange Commission (SEC) over their promotion of a cryptocurrency known as FyreCoin.

The SEC alleged that the celebrities violated federal securities laws by promoting FyreCoin on social media without disclosing that they had been paid for their endorsements. The SEC also alleged that the promoters had misled investors by claiming that FyreCoin was backed by real estate assets, when in fact it had no backing whatsoever.

Under the terms of the settlement, the promoters will pay a total of $436,000 in disgorgement, penalties, and interest. In addition to Lohan and Lil Yachty, other celebrities involved in the settlement include boxer Floyd Mayweather Jr., music producer DJ Khaled, and reality TV stars the Kardashian sisters.

While the SEC settlement is a significant blow to the reputation of the celebrities involved, it is also a reminder of the risks associated with investing in cryptocurrency. Cryptocurrency markets are highly volatile and largely unregulated, making them a popular target for scams and frauds.

Investors should always do their own research and exercise caution when investing in any type of cryptocurrency. They should also be wary of promoters who promise high returns or guarantee the safety of their investments.

The SEC has been cracking down on cryptocurrency scams and frauds in recent years, and has brought numerous cases against individuals and companies involved in fraudulent ICOs and other cryptocurrency-related schemes.

The settlement with Lohan, Lil Yachty, and the other celebrities is just the latest example of the SEC's efforts to protect investors and crack down on fraudulent activity in the cryptocurrency market. The SEC has warned investors to be cautious when investing in cryptocurrencies, and has urged them to do their own research and consult with a financial advisor before investing.

In conclusion, the settlement with Lohan, Lil Yachty, and other celebrities involved in the promotion of FyreCoin is a reminder of the risks associated with investing in cryptocurrency. While cryptocurrencies can offer significant returns, they are also highly volatile and largely unregulated, making them a popular target for scams and frauds. Investors should always exercise caution and do their own research before investing in any type of cryptocurrency

Actress Lindsay Lohan and rapper Lil Yachty are among a group of celebrities who have agreed to pay more than $400,000 in a settlement with the U.S. Securities and Exchange Commission (SEC) over their promotion of a cryptocurrency known as FyreCoin.

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