Music producer DJ Khaled and boxer Floyd Mayweather Jr have been fined by the Securities and Exchange Commission (SEC) after they secretly received payments for promoting cryptocurrencies.
The two have agreed to pay a combined $767,500 in fines and penalties, the Securities and Exchange Commission (SEC) said in a statement on Thursday. They neither admitted nor denied the regulator’s charges.
According to the SEC, Mayweather and Khaled failed to disclose that they had received promotional payments from three companies which had made Initial Coin Offerings (ICOs) – a controversial method of raising capital by creating coins or tokens using the blockchain technology which underpins Bitcoin.
“In addition, Mayweather agreed not to promote any securities, digital or otherwise, for three years, and Khaled agreed to a similar ban for two years,” the SEC’s statement added.
Khaled’s millions of followers have been informed through several social media accounts that Centra Tech’s token would be a “Game changer.” He has agreed to give up the $50,000 he was paid by Centra Tech and also pay a $100,000 penalty and $2,725 in interest. The DJ has been further banned from promoting any securities for two years, though he was not forced to admit any wrongdoing.
> Shiuly Rina
DJ Khaled Fined for Illegally Promoting Cryptocurrency
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