SEC Slaps Boxer and DJ With Fines for Promoting ICOs
The SEC has announced that it has charged famous Boxer Floyd Mayweather and Music Producer DJ Khaled for promoting ICOs without disclosing the payments they received.
On Thursday, the SEC revealed that Mr Mayweather got paid from three different ICO issuing companies—$100,000 from Centra Tech and $200,000 from Stoxand and Hubii Network. Mr Khaled also received $50,000 from Centra Tech.
Mr Mayweather touted Centra’s ICO on Twitter to his fans, sending messages saying, “starts in a few hours. Get yours before they sell out, I got mine.” Mr Khaled publicly boasted that Centra’s ICO was a “game changer” on his social media accounts, according to the SEC.
With neither admitting to or denying the charges, Mayweather agreed to pay a total of $614,775 in disgorgement, penalties and interest under the settlement, while Khaled was asked to pay $152,725 in total.
In addition to the penalties, both of them are banned from promoting securities—Mayweather for three years and Khaled for two. Mayweather also agreed to cooperate with the SEC’s ongoing investigation.
A year ago, the SEC made its first warning, stating that celebrities could be violating the law if they “do not disclose the nature, source and amount of compensation paid in exchange for the endorsement.”