According to Bloody Elbow, back in March, Jake Paul and a group of other high-profile individuals were hit with SEC violations due to their alleged association with Justin Sun, who is being accused of selling cryptocurrency assets through MLM-like structures that are in violation of the US Securities Act. According to Kotaku, Sun is being accused of artificially inflating the apparent trading volume of his own cryptocurrencies.
It has been reported that Paul was hired by Sun to promote these schemes without disclosing that they were compensated for doing so and the amount of their compensation. Alongside Paul, other celebrities charged include actress Lindsay Lohan, musicians Soulja Boy, Ne-Yo, Akon, Lil Yachty, and porn star Kendra Lust.
Meanwhile, Paul is also the co-founder of Betr, a platform licensed in Massachusetts that claims to be the world’s first ‘micro-betting app’. The platform allows users to bet on extremely small instances within sports, such as the location of a single pitch in a baseball game or the outcome of a single possession in a basketball game.
Following the SEC violations, Loretta Lillios, director of the Massachusetts Gaming Commission’s Investigation and Enforcement Bureau, has confirmed that her investigation will include looking into why the MGC was not notified of the charges against Paul sooner. Sports Handle reports that Betr underwent a “tough review” process before being granted a license in Massachusetts, which included questioning Paul about FBI visits to his home (which did not result in any charges).
Despite passing the review process, the vote on whether to grant Betr a license was not unanimous, unlike with all the other platforms. Eileen O’Brien was the only commissioner to vote against Betr, citing concerns about the platform’s suitability. She praised the level of detail in the application, but also noted that suitability is a serious issue and requires candid answers from applicants.
