The SEC has filed fraud charges against Justin Sun and eight celebrities, including Akon and Ne-Yo

The SEC has filed charges against cryptocurrency inventor Justin Sun and three of his businesses for the unregistered offer and sale of securities related to the digital assets Tron (TRX) and BitTorrent (BTT).

Investors who bought TRX in Tron wallets or on connected cryptocurrency exchanges are also said to have been offered and sold BTT in unregistered monthly airdrops by Sun and his firms.

Sun is also accused of coordinating a conspiracy to bribe celebrities to promote TRX and BTT without revealing their income and illegally influencing the TRX secondary market via significant wash trading.

The SEC probe also claims that Sun ordered 600,000 wash transactions of TRX between two accounts he managed on a cryptocurrency exchange, with daily volume ranging from 4.5 million to 7.4 million TRX.

According to the SEC’s press announcement, Sun reportedly supplied a large quantity of TRX necessary for the plan to succeed.

SEC Chairman Gary Gensler stated: “When crypto asset securities are issued and sold without adequate disclosure, “as this case shows again, investors face a high risk.”

The SEC’s Director of Enforcement, Gurbir S. Grewal, said, “Offering securities without meeting registration and disclosure laws and then manipulating the market for those securities is a tried-and-true method for deceiving and harming investors, and Sun and others followed this script.”

Without admitting or contesting the SEC’s allegations, all but two celebrities have agreed to pay over $400,000 in disgorgement, interest, and penalties to resolve the claims.

Read Also: Major Singaporean Exchange Announces XRP Rewards

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.