American-Senegalese singer, Akon, along with several other celebrities which include Neyo, actress Lindsay Yohan, and so on have all been fined.
They were forced to pay tens of thousands of dollars to settle claims they promoted crypto investments to their social media followers without disclosing they were being paid to do so.
The group of celebrities, which also included rapper Lil Yachty, boxer and internet personality Jake Paul and adult film performer Michelle Mason, agreed to pay more than £325,000 ($400,000) to the US Securities and Exchange Commission (SEC).
The celebrities were paid to promote crypto companies Tronix and BitTorrent to their millions of followers on social media.
None of the celebrities who paid fines admitted or denied the SEC’s findings. Two other famous figures, rapper Soulja Boy and pop singer Austin Mahone, did not reach a settlement with the SEC.
Representatives for the other celebrities either declined to comment or did not return requests for comment.
Major public figures including Matt Damon, Tom Brady and Reese Witherspoon have used their influence and massive social media following to promote cryptocurrencies in recent years. But it is illegal to do so without disclosing that they are being paid.
Recall that reality television star Kim Kardashian agreed to pay a £813,635 ($1m) fine last year to settle federal charges after she recommended Ethereum Max tokens without disclosing she was paid to do so.