The SEC announced today that it has settled charges against Floyd Mayweather and DJ Khaled. The U.S. Securities and Exchange Commission it appears sort to make an example out of the celebrities for “unlawfully touting” initial coin offerings. The star’s problem was not getting involved in the cryptocurrency arena but it was the fact that they did not disclose payments they received for promoting the initial coin offerings on their very large social media platforms. The SEC included specific social media posts from both Mayweather and Khaled in its press release. Khaled, it writes, called the Centra ICO a “game changer.” While Mayweather, posted to his followers that the Centra ICO, “starts in a few hours. Get yours before they sell out, I got mine.” He later added, “You can call me Floyd Crypto Mayweather from now on.”
Floyd Mayweather who was reportedly paid by three different ICO issuers, including $100,000 from a company called Centra; has agreed to pay a fine of $614,775. He’s also been prohibited from promoting any securities “digital or otherwise” for three years.
DJ Khaled who also reportedly paid $50,000 from Centra, has agreed to pay a fine of $152,725. He has also been prohibited from promoting any securities “digital or otherwise” for two years.
The SEC added that as part of the settlement, neither celebrity admitted or denied wrongdoing. Stay tuned for any updates on this story.