Lindsay Lohan (36), Jake Paul (26), Akon (49) and Ne-Yo (43) are among the celebrities who pay millions of kroner to avoid crypto-lawsuits.
The news that these four and several other celebrities were charged with crypto fraud came on Wednesday evening.
The background to the charge is that the celebrities have promoted the company of crypto entrepreneur Justin Sun (32) to their many millions of followers on social media, without informing the authorities that they have been paid.
Night to Thursday Norwegian time reports ABC News that several of the accused have entered into an agreement with the court to pay a total of over NOK four million in fines.
Such agreements are common for courts in civil cases, and thus involve a person being ordered to give up any wrongful gains or profits that were made as a result of their wrongdoing.
The Securities and Exchange Commission (SEC) confirms the settlement to ABC News. However, the agreement does not imply any form of confession.
Jake Paul and Lindsay Lohan charged with crypto fraud
In addition, a number of other celebrities have been charged, including the artists Soulja Boy and Ne-Yo.
Leslie Sloane, spokesperson for Lindsay Lohan, says that the film star was contacted in connection with the case in March last year. She claims that Lohan was not aware that she was obligated to disclose what she had earned from the crypto marketing.
According to the agreement, the actress, who recently announced that she is expecting her first child, has agreed to pay over NOK 300,000 in fines.
Boxer Jake Paul and artists Akon and Ne-Yo have not commented on the matter.
The artists Soulja Boy (32) and Austin Mahone (26) have also been charged, but they have not entered into any agreement.
The celebrities allegedly got investors to buy so-called TRX and BTT tokens, i.e. forms of cryptocurrency. SEC Chairman Gurbir Grewal said in a statement Wednesday that Sun asked the celebrities to keep the fact that they were paid hidden from their followers.
Cryptocurrency is digital currency built on blockchain technologyblockchain technologyA blockchain is a decentralized and distributed digital “account book” that makes it possible to register, track and make visible all digital transactions. A blockchain stores data in blocks that are linked to each other using cryptography. The most well-known use of blockchains is cryptocurrency such as Bitcoin, and cryptographic certificates of ownership (NFT). Source: SNL.
Sun himself is charged with fraud and securities violations.