Scandal with cryptocurrency and celebrities

The US SEC has filed a legal case against Chinese entrepreneur Justin Sun and his 3 enterprises. The complaint asserts that Sun's businesses traded Tronix (TRX) and BitTorrent Token, shortly BTT, digital currencies without sufficient registration, contravening SEC guidelines.

The complaint also accuses Sun of directing manipulative wash trading of TRX to maintain an artificial appearance of investor interest and keep TRX's price afloat.

The SEC recently filed a lawsuit against a group of eight famous individuals, such as Lindsay Lohan, Paul, and Soulja Boy, for reportedly promoting TRX and BTT in violation of securities laws on various social media sites. One example of this is Lindsay Lohan's tweet to her eight million Twitter followers that she's already a supporter of 3 of Sun's digital currencies, including TRX. To settle the allegations without admitting fault, Paul, Lohan, and rapper Lil Yachty, among others, agreed to pay a combined sum of over $400,000.

The legal case against both Sun and the famous individuals was lodged in the US District Court for the Southern District of New York. In a related matter last year, the SEC also took legal action against Kim Kardashian for endorsing EthereumMax (EMAX) on social media, resulting in a settlement agreement of $1.26 million.

Coinbase, one of the top digital currency exchange platforms, received a legal notice from the SEC informing them of potential charges. The company had previously requested that the SEC specify which assets on their platform could be deemed securities, but the agency refused to do so. If the charges proceed, it would represent a significant regulatory move against Coinbase, which has endeavored to establish itself as a reputable entity in the cryptocurrency industry.