Among the 8 celebrities included in the SEC’s complaint are Lindsay Lohan and Soulja Boy.
Sun tweeted a lengthy thread in which he discussed the SEC event.
On Wednesday, the U.S. Securities and Exchange Commission (SEC) filed charges of fraud against Chinese cryptocurrency entrepreneur Justin Sun. Among the eight celebrities included in the SEC’s complaint are Lindsay Lohan and Soulja Boy.
Since August 2017, Sun and his businesses have been accused of conspiring to distribute billions in Tronix (TRX) and BitTorrent (BTT) crypto assets and exaggerate trade volume.
It was also claimed that he misled the public into believing that celebrities who promoted TRX and BTT on social media had an impartial passion for TRX and BTT and weren’t simply paid spokespersons, by hiding the fact that they had been compensated. The SEC said Sun’s actions resulted in illicit gains of tens of millions of dollars at the cost of other investors.
Securities Claim by SEC
The SEC said in a lawsuit filed in federal court in Manhattan that Sun sold TRX and BTT without first registering the sales with the agency on the grounds that they were securities.
Recently, Sun re-tweeted a lengthy thread in which he discussed the SEC event and provided a checklist of things to do. The tweet was in Chinese and the translation brought out some points which were covered. He pointed out that the platform’s net outflow was just $30M, compared to the daily net deposits of $20M a few days before.
Moreover, transferring tens of millions of dollars to Huobi was on the list of things to do in order to fortify the foundation. Secondly, it mentioned maintaining a high standard of excellence in risk management, making incremental improvements to the platform’s capital usage rates, and growing imperceptibly as a company.
Sun also mentioned continuing to release a handful of great new coins to generate Huobi’s wealth impact. The entrepreneur also gave hints that significant changes will occur in the second quarter of this year.