#SECCryptoRule

Which Celebrities Have Been Charged by SEC for Promoting Crypto?

The US Securities and Exchange Commission (SEC) has charged 12 American celebrities so far, for failing to disclose that they were paid to promote crypto assets on their social media accounts. 10 of the celebrities have settled charges with the SEC without admitting wrongdoing, by paying a total of $3.8 million in penalties, disgorgement and prejudgment interest.

On one level, the SEC is warning influencers that they need to disclose sponsored posts and reminding investors to be wary of celebrity endorsements of crypto. At the same time, these charges against celebrities serve as a high profile opportunity for the SEC to strengthen their claim that cryptocurrencies are financial securities, and to ramp up regulation of the digital assets.

The SEC charged these celebrities as part of its crackdown on cryptocurrency, in relation to three separate cases: Justin Sun in 2023, EthereumMax (EMAX) in 2022, and Initial Coin Offerings (ICOs) in 2018.

Ex-NBA star Paul Pierce and socialite Kim Kardashian have been charged the most by far, paying the SEC $1.40 million and $1.26 million respectively. Both were charged under the EMAX case and agreed not to promote any securities for three years, according to SEC announcements last year. Ex-professional boxer Floyd Mayweather Jr. was charged the third highest amount of $0.61 million. He was charged in the SEC’s first cases against illegal promotions of ICOs, alongside music producer DJ Khaled who was charged $0.15 million. The 2018 charges also concluded with Floyd Mayweather and DJ Khaled banned from promoting any securities, for three years and two years respectively.

Most recently in the Justin Sun case, 6 celebrities were charged by the SEC for a total of $406,729. Music artist Akon paid the most at $170,814, followed by boxer Jake Paul’s $101,887. Actress Lindsay Lohan and two other music artists, Ne-Yo and Lil Yachty, were charged around $40,000 each, while pornstar Kendra Lust was charged the least at $3,884.