Lindsey Lohan, Akon and other celebrities accused of crypto abuse

by Arthur · March 25, 2023

The latest batch of celebrities (and pseudo-celebrities) hit with federal charges after dabbling in cryptocurrencies would probably make a decent mixtape. It would at least be sonically interesting.

According to the Securities and Exchange Commission, this latest group includes rappers Lil Yachty and Soulja Boy, R&B singers Austin Mahone (whose songs I’ve never heard but who I’m told could carry a song) and Ne-Yo, and pop star Akon. There’s also Lindsay Lohan, who would make a solid background dancer. And there’s also adult movie star Kendra Lust and social media mogul Jake Paul. It’s clear that we see a range of talent here.

The SEC said Wednesday it had filed civil charges against all of them for promoting cryptocurrencies without disclosing that a crypto entrepreneur had paid them to do so. The SEC charged the founder, Justin Sun, with fraud in the same announcement.

The SEC said all the celebrities except Soulja Boy (whose real name is DeAndre Cortez Way) and Mahone agreed to a combined settlement totaling more than $400,000. Under the settlement, the parties were not required to confirm or deny the SEC’s allegations.

(A spokesperson for Lohan told NBC News that she had been “unaware of the disclosure requirement” but had “agreed to pay a fine to resolve the matter.” Representatives for Sun and the others charged did not immediately respond to requests for comment, while a spokesperson for Paul declined to comment.)

Over the past few years, several celebrities have faced consequences for touting cryptocurrencies to their followers without disclosing that they were paid as promoters. In many cases, they gave the impression that they were endorsing these – often worthless – cryptocurrencies as solid business investments… and not as a sponsored ad.

Wednesday’s SEC announcement follows a series of cryptocurrency failures over the past year — the most publicized of which involved the collapse of FTX, a cryptocurrency exchange. I had already warned that cryptocurrency regulation was inevitably going to destroy the hopes of crypto bros everywhere. And after the FTX crash, I noticed that rich Wall Street capitalists were starting to sound like progressives with their calls for more federal scrutiny of the crypto world.

The SEC’s latest action is yet another sign that Judgment Day has arrived for the formerly free-wheeling crypto industry.

Ja’han Jones is The ReidOut Blog writer. He is a futurist and multimedia producer with a focus on culture and politics. His previous projects include “Black Hair Defined” and “Black Obituary Project.”