FameEX Hot Topics | SEC Alleges Securities Law Breach by Cryptocurrency Mogul Justin Sun and Lindsay Lohan

The US Securities and Exchange Commission (SEC) has recently accused cryptocurrency mogul Justin Sun and his companies of violating securities laws in the offering and sale of Tronix (TRX) and BitTorrent (BTT) tokens to the public without registering them as securities. The SEC has been cracking down on the cryptocurrency industry and Sun is the latest high-profile figure to be caught up in the regulatory agency's efforts.However, the charges against Sun and his companies don't end there. In addition to the allegations of unregistered offering and sale of crypto asset "securities" TRX and BTT, the SEC has accused Sun and his companies of fraudulent activities related to TRX.

Specifically, the SEC alleges that Sun and his companies engaged in extensive wash trading to "fraudulently manipulate" the secondary market for TRX. Wash trading involves the simultaneous buying and selling of the same crypto asset to make it appear that there is more trading activity than there actually is.The SEC has also accused Sun and his companies of incentivizing celebrities, including actress Lindsay Lohan, to promote TRX and BTT without disclosing their compensation. The SEC alleges that this activity violates federal securities laws, which require full disclosure of compensation received for promoting investments.

It remains to be seen how the case will unfold, but Sun and his companies could potentially face significant fines and other penalties if found guilty. The SEC's actions against Sun and other cryptocurrency industry players are part of a broader effort to protect investors and ensure compliance with securities laws in the rapidly evolving world of cryptocurrencies.

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