Floyd Mayweather Jr and Dj Khaled Charges for Unlawfully Promoting ICO by U.S SEC




Floyd Mayweather Jr & Dj Khaled

U.S. Securities and Exchange Commission (SEC) has charged professional boxer Floyed Mayweather Jr. and music producer Khaled Khaled for unlawfully advertising Initial Coin  Offerings (ICOs), according to a press release published Nov.29.

According to the announcement, the SEC found that Mayweather did not disclose promotional payments from three ICO issuers, including $100,000 form cryptocurrency startup Centra Tech, while Khaled, also known as DJ Khaled, failed to disclose $50,000 payment form the same company.

Back in May, the three co-founders of Centra- Sohrab Sharma, Robert Farkas, and Raymond Trapani- were formally indicted for running a fraudulent ICO, which raised $32 million investors in 2017.

While neither party admitted to nor denied the charge against them, they agreed to pay certain fees and restrictions. Mayweather will pay $300,000 in disgorgement, a $300,000 penalty, and $14,775 in prejudgment interest. Khaled will pay $50,000 in disgorgement, a $100,000 penalty, and $2,725 in prejudgment interest.

Moreover, Mayweather agreed to collaborate with the investigation and not to promote any kind of securities during the next three years. Khaled has been barred from securities promotion for two years.

Mayweather began promoting Centra's ICO in September 2017, claiming that he was already using his Titanium Centra card to use digital currencies like Bitcoin (BTC) and Ethereum (ETH) in his business transactions. At that time, Centra's ICO was the third ICO being promoted by Mayweather.

Just a few weeks later, Khaled joined Mayweather in promoting Centra's ICO by making public his acquisition of a Titanium Centra Card on his Instagram account.

Later in November 2017, the SEC warned that ICOs that was endorsed by celebrities could be illegal. The commission claimed that personalities who promote token sales could be violating the "anti-touting" laws if they do not reveal the compensation they received from their endorsements.


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