Lindsay Lohan Sued For Her Celeb Endorsement of Tronix Cryptocurrency

A group of celebrities who endorsed the Tronix cryptocurrency are being charged by the Securities and Exchange Commission (SEC) after the agency uncovered cases of fraud and unregistered securities related to the digital currency.

Lindsay Lohan is one of eight celebrities and influencers involved in these charges. The other names are social media personality Jake Paul, adult film star Kendra Lust, and musicians Austin Mahone, Lil Yachty, Soulja Boy, Ne-Yo, and Akon.

These celebrities are being charged along with Tronix crypto founder Justin Sun, who is being accused of “manipulating the trading activity of the two tokens, creating the appearance of active trading when it did not exist” (via CNBC).

Overall, Sun is being accused of inducing investors to purchase cryptocurrency assets by “orchestrating a promotional campaign in which he and his celebrity promoters hid the fact that the celebrities were paid for their tweet.”

While buying and selling cryptocurrencies are not illegal practices, it is illegal for celebrities to promote just about any product or service (physical or digital) without labeling that promotion as a paid sponsorship. As such, these new charges claim that these celebrities have promoted Tronix without giving notice that they were being paid for it.

Cryptocurrency has been a hot topic in the last few years, and these new charges from the SEC show just how volatile the market for digital currencies still is. However, celebrity endorsements aren’t new in any way, and the legal responsibilities attached to those promotions keep evolving during these ever-changing times of social media marketing.

With the official filing of these SEC charges, only time will tell what will end up happening to the celebs attached to this case.