Jake Paul and Lindsay Lohan caught in the tornado with several other celebrities, PC: Arabianbusiness
Lindsay Lohan and Jake Paul have been implicated in a lawsuit filed by the US Securities and Exchange Commission (SEC) against a cryptocurrency company called SmartCarCoin.
The SEC has accused SmarCarCoin and its founders of conducting a fraudulent initial coin offering (ICO_ that raised $2.5 million from investors.
The SEC alleges that SmarCarCoin claims to have developed a blockchain-based platform for buying and selling used cars, but in reality, the company had no such technology. The SEC also alleges that Lohan and Paul were paid to promote the ICO on their social media accounts without disclosing that they had been compensated for their endorsements.
Lohan and Paul are not named as defendants in the SEC’s lawsuit, but they are described as “relief defendants” because they allegedly received funds from the ICO without providing any legitimate services to SmarCarCoin. The SEC is seeking to recover those funds as part of its efforts to compensate defrauders’ investors.
Recently, Lindsay Lohan along with other celebrities settled a lawsuit against another cryptocurrency company called Fyrecoin.
The lawsuit alleged that the company had used its images without permission to promote its cryptocurrency offering.
The settlement agreement reportedly requires Fyrecoin to pay the celebrities an undisclosed amount of money and prohibits the company from using their names or California in 2021 and included claims of false endorsement, misappropriation of likeness, and violation of the right of publicity.
These cases serve as a reminder that celebrities can be held accountable for promoting fraudulent fraud. It also highlights the importance of transparency and disclosure in all types of advertising and endorsements. Additionally, including those related to cryptocurrency and other emerging technologies.
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