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Not all that long ago, it appeared that Jake Paul was on top of the world.
Paul had just beaten UFC legend Anderson Silva in the a boxing match. His stardom was as big as ever, and fans were finally starting to buy into the idea that made he was a legitimate boxer.
But things change quickly, and unfortunately for Paul they haven’t changed for the better.
Paul lost his long-hyped fight with Tommy Fury, the smaller, louder brother of heavyweight king Tyson Fury. He then came out with a series of excuses for the loss, including a wet dream the night before the fight.
But hey, he’s still right and things couldn’t get much worse than that, right?
Wrong.
Jake Paul Pays Out $400K After Being Charged In Crypto Scam
Paul agreed to a settlement with the US Securities and Exchange Commission on Wednesday after being charged alongside a number of celebrities in a recent cryptocurrency scam.
An SEC filing on Wednesday charged eight celebrities including Paul. It cited Paul’s tweet on Feb. 12, 2021, in which he promoted Tronix (TRX) tokens. The tokens are securities publicly offered by Tron Foundation Limited, which the filing indicated is owned by Yuchen “Justin” Sun, who was tagged in the tweet. The tweet was a reply to one from rapper Lil Yachty, who also was charged, and included a TRX hashtag and a rocket ship emoji.
According to the SEC, Paul’s promotion was in exchange for crypto assets valued at $25,019. Paul had 3.8 million Twitter followers at the time, the filing read. The SEC also cited Section 17(b) of the Securities Act, which states in part that it’s “unlawful for any person to: publish, give publicity to … [a security] for consideration received or to be received.” – via ESPN
ESPN’s Anthony Olivieri reports Paul paid a total of $400,000 in disgorgement, interest and penalties.
Paul was just one of eight celebrities charged, joining actress Lindsay Lohan, adult film star Kendra Lust and music artists Lil Yachty, Ne-Yo and Akon who each agreed to settlements.settled. While rapper Soulja Boy and singer Austin Mahone did not reach a settlement.