SEC Brings More Crypto Enforcement and Influencer Actions

As regular readers of this blog will know, you can't go touting crypto-securities without disclosing how much you've been paid to push those products.  I first wrote about this issue in 2018 after Evander Hollyfield attracted attention for promoting the fraudulent AriseBank coin. The same issue showed up again with Kim Kardashian last year.  Now, we've got the SEC taking action against eight more:

• Lindsay Lohan

• Jake Paul

• DeAndre Cortez Way (Soulja Boy)

• Austin Mahone 

• Michele Mason (Kendra Lust)

• Miles Parks McCollum (Lil Yachty)

• Shaffer Smith (Ne-Yo)

• Aliaune Thiam (Akon)

They all allegedly touted TRX and BTT without disclosing that they were paid to do so or the amount they were paid.  The enforcement actions arise out of the SEC's pursuit of Justin Sun for allegedly fraudulently manipulating the secondary market for TRX through wash trades.  

I remain skeptical about much of the asset valuation in the crypto and NFT space.  I'd expect that the SEC will continue to pursue these kinds of actions when it has evidence that much of the market for a particular cryptocurrency or type of NFT is largely illusory wash trading designed to generate the appearance of value to suck in money.

Soulja Boy and Austin Mahone have not yet reached an agreement with the SEC to resolve the matter.  Hopefully, going forward, Soulja Boy will tell 'em to stop touting crypto without disclosing what they have been paid.  To help with that, I asked ChatGPT to write a song in the style of Soulja Boy to warn people not to tout crypto for compensation without disclosure.  And here it is:

Listen up, y'all, I got something to say 'Bout this crypto game that people play Everyone's talking 'bout how much they make But some of y'all ain't being straight

Chorus: Don't tout your crypto without disclosure SEC will bring that regulatory exposure If you're being paid, you gotta let people know Or else you might end up in a world of woe

Verse 2: I know it's tempting to flex on the 'gram Posting pics with your new Lambo, damn But you gotta remember the rules of the game Or else you might end up in shame

Chorus: Don't tout your crypto without disclosure SEC will bring that regulatory exposure If you're being paid, you gotta let people know Or else you might end up in a world of woe

Verse 3: It's all good to be excited 'bout your gains But don't forget to disclose the chains That tie you to the coins you're promoting Or else you might find yourself floating

Chorus: Don't tout your crypto without disclosure SEC will bring that regulatory exposure If you're being paid, you gotta let people know Or else you might end up in a world of woe

Verse 4: So listen up, my friends, and hear me loud Don't be a shill, don't be part of the crowd Just be honest, disclose what you're paid And you'll be safe in the crypto game

Chorus: Don't tout your crypto without disclosure SEC will bring that regulatory exposure If you're being paid, you gotta let people know Or else you might end up in a world of woe

Outro: That's my message, hope you learned something new Don't be a scammer, be honest and true And you'll succeed in the crypto space Just remember to disclose, and keep up the pace.