Pro Boxer Floyd Mayweather and DJ Khaled are Charged by the SEC for This

It was in 2017 that the Securities and Exchange Commission had warned that coins sold in ICOs may be securities and that those who offer them have to comply with federal securities laws.

Both Floyd Mayweather and music producer DJ Khaled both promoted ICOs without disclosing payments. Mayweather didn’t disclose a $100,000 promotional payment from Centra Tech Inc., while Khaled didn’t disclose a $50,000 payment.

While Mayweather wrote on his Twitter account about Centra’s ICO, writing that it “starts in a few hours. Get yours before they sell out, I got mine,” Dj Khaled called it a “game changer” on his social media.

According to the SEC, Mayweather and DJ Khaled are the first cases to be charged for touting violations of ICOs. Both have setted charges without admitting or denying the findings.

Mayweather will pay $300,000 in disgorgement, a $300,000 penalty and $14,775 in interest while Khaled will pay $50,000 in disgorgement, a $100,000 penalty and $2,725 in interest. Mayweather agreed not to promote securities for three years and to cooperate with the investigation and Khaled agreed to two years.