Jake Paul, and his company Betr, is currently being investigated by the Massachusetts (per Legal Sports Report). The investigation was spurred by Jake Paul being charged with fraud by the U.S. Securities and Exchange Commission (SEC) in March.
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Why was Jake Paul charged by the SEC?
Jake Paul, and a few other celebrities, were hit with SEC violations in March for their alleged connection to Justin Sun, who is accused of selling crypto assets through MLM-like structures that violate the US Securities Act (per Kotaku).
Sun is accused of “orchestrating a scheme to artificially inflate the apparent trading volume” of his own cryptocurrencies.
Paul was reportedly hired by Sun to promote these schemes. The SEC claims that Paul, and others, were “illegally touting” Sun’s cryptocurrencies “without disclosing that they were compensated for doing so and the amount of their compensation.”
Others celebrities charged alongside Paul include actress Lindsay Lohan, musicians Soulja Boy, Ne-Yo, Akon and Lil Yachty and porn star Kendra Lust.
Jake Paul is a co-founder of Betr
Betr, which is licensed in Massachusetts, claims to be the world’s first ‘micro-betting app’. The platform is based around offering users the chance to bet on extremely small instances within spots, for example the location of a single pitch in a baseball game or the outcome of a single possession in a basketball game.
Loretta Lillios, director of the Massachusetts Gaming Commission’s Investigation and Enforcement Bureau confirmed to LSR that her investigation would include looking into why the MGC was not notified of the charges against Paul sooner.
Betr came through a ‘tough review’ process before being granted a license in Massachusetts, according to Sports Handle. That review included a grilling for Paul over FBI visits to his home (which resulted in no charges).
Paul came through that process with the result he wanted, with Betr becoming one of 10 online gaming platforms being granted a license in the state. However, the vote on whether to grant Betr was not unanimous (unlike with all the other platforms).
Eileen O’Brien was the only no vote against Betr.
“There was a lot in the application that was unique — a lot of detail about Massachusetts to a lot of detail on responsiveness and the product offering which I was very excited to see — but I had equally, an amount of concerns about it, particularly when it comes to suitability,” O’Brien said during the review process.
“I don’t think I went too far, and I don’t think anyone on this commission went too far. Suitability is a serious issue. I’ve been here five years, and I know these can be very uncomfortable situations, and I laud everyone who candidly answers the questions.”
Betr signs the Cavinder Twins
Betr’s latest move has been to sign Haley and Hanna Cavinder who are viral stars of TikTok (and University of Miami basketball players). The Cavinder twins have also signed deals with the WWE.
Jake Paul vs. Nate Diaz is on tap for August
Jake Paul’s next foray into the boxing ring will be against former UFC fighter Nate Diaz. Their bout is currently scheduled for August 5 in Dallas, TX.
Paul is coming off his first ever loss in the ring. In Saudi Arabia in February he dropped a split decision to long-time nemesis Tommy Fury. Prior to that loss Paul scored wins over UFC legend Anderson Silva and former UFC welterweight champion Tyron Woodley.
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