On Wednesday, March 22, local time (March 22222 (March 2222222 (March 2222 2222On the day of), Sun Yuchen, an entrepreneur in China, and his company were suspected of fraudulent transactions.Eight American celebrities were also accused of illegally promoting Sun Yuchen's encrypted asset securities.
The US Securities and Exchange Commission (SEC) announced on Wednesday that it is on the official website that Sun Yuchen and their three wholly -owned companies TRON, Bitorrent Foundation and Rainberry Inc. (formerly known as BitTorrent) filed a lawsuit and accused him of accusing him of accusing him of accusing him of accusing him of accusing him.Without registration and sales of encrypted asset securities TRONIX (TRX) and BitTorrent (BTT), and to cheat TRX's secondary market through a large number of shuffle transactions, involving the same or almost simultaneous sale of securities to make it look active, butThe actual benefit ownership has not changed actual.SEC also accused Sun Yuchen and others planned a plan to pay unveiled rewards to celebrities to promote TRX and BTT.
Sun Yuchen was also accused of concealing the cost of promoting TRX and BTT on celebrities on social media accounts, misleading investors that these celebrities spontaneously interested in investing in TRX and BTT, not only paid promotion.
Eight American celebrities were accused of illegally promoting TRX and/or BTT by SEC, and the facts and rewards of their rewards were not disclosed, including American film and television star Lindsay Lohan, Internet celebrity boxersJake Paul, American rapper Soulja Boy, American pop singer Austin Mahone, porn star Kendra Lust, American rapper Lil Yachty, American singer Ne-Yo, and American hip-hop singer Akkee(Akon), etc.
SEC also accused Sun Yuchen's violation of the anti -fraud and market manipulation terms of the Federal Securities Law, and planned a plan to exaggerate TRX's apparent transaction volume in the secondary market.
The complaint said that at least from April 2018 to February 2019, Sun Yuchen instructed his employees to conduct more than 600,000 TRX shuffle transactions between the two encrypted asset trading platform accounts controlled by them.The daily reshuffle transaction volume is between 4.5 million and 7.4 million TRX.Sun Yuchen also sold TRX to the secondary market, and obtained 31 million US dollars (below, $ 418 million) in illegal, unregistered distribution and sales.
Gary Gensler, chairman of the US Securities and Exchange Commission, said that as allegations, Sun Yuchen and his company not only targeted American investors in unregistered trading to sacrifice investors from investorsAt the cost of interests, it has generated millions of dollars of illegal returns, and also coordinated shuffle transactions on an unregistered trading platform to create misleading appearances for active TRX transactions.Sun Yuchen further induced investors to buy TRX and BTT. He and his celebrity salesman planned a promotional activity, concealing the fact that celebrities obtained compensation through tweets."
Jenasler emphasized that this case once again shows that the issuance and sale of crypto asset securities will bring high risks to investors without appropriate disclosure.
Except for exceptIn addition to Soulja Boy and Mahone, other American celebrities agreed to pay more than $ 400,000 in pay, interest, and fines. They neither admit nor deny the SEC's investigation results.
