LOS ANGELES (AP) – Actress Lindsay Lohan, rapper Akon and several other celebrities have agreed to pay tens of thousands of dollars to settle claims they promoted crypto investments to their millions of social media followers without disclosing they were being paid to do so.
Lohan, Akon, recording artists Ne-Yo, and Lil Yachty, boxer and Internet personality Jake Paul all agreed to pay more than USD400,000 combined in disgorgement, interest and penalties to settle the claims, the Securities and Exchange Commission (SEC) said on Wednesday.
None admitted or denied the SEC’s findings as part of the settlement.
In response to a request for comment, Lohan’s publicist Leslie Sloane said the actress was contacted in March 2022, was unaware of the disclosure requirement, and agreed to pay a fine to resolve the matter.
Lohan, who last week announced she is pregnant, was called to give up the USD10,000 she was paid, plus interest, and pay a USD30,000 fine, according to an SEC complaint.
Many celebrities and athletes have used their influence and massive social media followings to promote cryptocurrencies in recent years, including Matt Damon, Tom Brady and Reese Witherspoon.
But doing so without disclosing when they’re being paid to do so is illegal, and has landed some big names in hot water with securities regulators.