. Rapper Soulja Boy (DeAndre Cortez Way) and singer Austin Mahone lost a lawsuit filed by the Securities and Exchange Commission (SEC) in March.
. Soulja Boy and Mahone were accused of promoting Justin Sun’s cryptocurrency TRON without disclosing their financial arrangements, while the most serious charges were directed at Sun and BitTorrent.
. In a final judgment, Mahone was ordered to repay $7,507 plus $682 in interest, fined $37,535, and barred from receiving securities-related compensation for three years, while Soulja Boy faces a potential default judgment for not responding to the SEC’s charges.
Rapper Soulja Boy, whose real name is DeAndre Cortez Way, and singer Austin Mahone have faced legal repercussions in their recent lawsuit against the Securities and Exchange Commission (SEC). The lawsuit, filed in March, also targeted crypto entrepreneur Justin Sun and Sun’s company, BitTorrent, encompassing a wide range of allegations, from market manipulation to failure to disclose paid advertising. While Soulja Boy and Mahone were implicated in the lawsuit for promoting Sun’s cryptocurrency TRON without disclosing their paid endorsements, the primary defendants in the case, Sun and BitTorrent, face more serious charges. They are expected to respond to the SEC’s allegations by September 20.
In a final verdict against Mahone, the singer has been prohibited from accepting compensation related to securities for three years. He has also been ordered to repay the $7,507 he received, along with $682 in interest, and to pay a $37,535 fine to the SEC. Consequently, Mahone has approximately one year to settle a total of $45,724 with the SEC for an undisclosed Tron advertisement.
On the other hand, Soulja Boy has chosen not to address the SEC’s accusations, potentially resulting in a default judgment against him. The exact amount he must pay to the SEC remains uncertain, and it’s unclear whether they have been able to communicate with him since his legal team was informed about the impending default judgment. Despite his legal troubles, Soulja Boy remains active on Twitter and recently performed in Atlanta, Georgia. Known for his 2007 hit “Crank That (Soulja Boy),” the rapper’s legal situation adds a new dimension to his career.