The U.S. Securities and Exchange Commission (SEC) has settled charges against DJ Khaled and professional boxer Floyd Mayweather for illegally promoting investments in Initial Coin Offerings (ICOs). The two celebrities did not admit or deny guilt, but they did pay a big fine. This was announced by the SEC on Thursday.
DJ Khaled failed to disclose a $50.000 payment from Centra Tech, while tweeting about their ICO being ‘a game changer’. Mayweather didn’t disclose he got $100.000 from Centra Tech and $200.000 to promote two more ICOs.
The two celebrities agreed to pay disgorgement, penalties and interest. This meant that Mayweather paid a total of $614.775 and DJ Khaled $152.725. Mayweather agreed not to promote any securities for the next three years, while DJ Khaled agreed for a two year ban.
Centra (CTR) was a fraudulent ICO project that promised to build financial products, including a crypto-backed VISA card. It raised $32 million during its ICO. However, one of the founders was fabricated and the company never applied for a card or had contact with VISA. The two founders were charged for fraud back in April.
Also published on Medium.