Boxer Jake Paul is among several celebrities who reached a settlement with the SEC after being charged with touting a crypto asset without disclosing that they were being paid to do so, according to a Wednesday report from ESPN.
Paul joined seven other celebrities in paying $400,000 in disgorgement, interest and penalties to settle the case, which allowed them to never have to admit to or deny the charges formally.
Paul was charged after the SEC cited a tweet of his from Feb. 12, 2021, in which he promoted Tronix (TRX) tokens. The promotion allowed Paul to collect TRX assets valued at over $25,000. Paul was apparently in direct violation with Section 17(b) of the SEC’s Securities Act, which states that it is “unlawful for any person to publish, give publicity to....[a security] for consideration received or to be received.”
Paul was joined in the indictment by actress Lindsay Lohan, adult film star Kendra Lust, and music artists Lil Yachty, Ne-Yo, Akon, Soulja Boy and Austin Mahone. Soulja Boy and Mahone were the only two people involved who did not reach a settlement with the SEC in the case.