Rapper Soulja Boy, real name DeAndre Cortez Way, and singer Austin Mahone have lost against the Securities and Exchange Commission (SEC) in a lawsuit filed in March against the pair, crypto entrepreneur Justin Sun, and Sun’s company BitTorrent.
The suit is wide-ranging, making claims from market manipulation to not disclosing paid advertising. Soulja Boy and Mahone sat on the less troubling of these charges, being accused of promoting Sun’s cryptocurrency TRON without disclosing that they were paid posts.
However, the main defendants in the case who are facing the most serious charges are Sun and BitTorrent. They will respond next week if they choose to fight the SEC. It’s expected that a filing will be made by September 20.
In a final judgment against Mahone, the singer was ordered to not accept securities-related compensation for three years, to pay back the $7,507 he was paid (plus $682 in interest), and to cough up a $37,535 fine to the SEC.
In total, the singer has just under a year to pay the SEC $45,724 for an undisclosed advertisement for Tron.
Soulja Boy off in this h*e, watch me crank it, watch me avoid (the SEC)
Meanwhile, Soulja Boy has refused to respond to the SEC’s charges, which has likely led to him receiving a default judgement. It remains unclear how much the rapper must pay to the SEC, let alone if they’ve been able to contact him since his attorneys were informed of the upcoming default judgement.
The rapper, famous for his song Crank That (Soulja Boy) released back in 2007, continues to be quite active on Twitter. He most recently performed a show in Atlanta, Georgia.