SEVERE WX : Flash Flood Watch View Alerts
STREAMING NOW: Watch Now

DJ Khaled, Floyd Mayweather Jr. charged with promoting cryptocurrency without disclosing they were paid

Music producer DJ Khaled and boxer Floyd Mayweather Jr. were charged by the Securities and ...

Posted: Dec 1, 2018 8:08 AM
Updated: Dec 1, 2018 8:08 AM

Music producer DJ Khaled and boxer Floyd Mayweather Jr. were charged by the Securities and Exchange Commission with promoting investments in initial cryptocurrency coin offerings without revealing that they'd been paid.

The SEC has said that cryptocurrency coins sold in initial coin offerings (ICOs) may be considered securities and subject to federal securities laws.

Business, economy and trade

Celebrities

Digital currencies

DJ Khaled

Economy and economic indicators

Floyd Mayweather, Jr.

Government organizations - US

Internet and WWW

Money, banknotes and coins

Social media

Sports figures

Technology

US federal departments and agencies

US government independent agencies

US Securities and Exchange Commission

Both Khaled and Mayweather settled with the SEC and agreed not to promote any securities, even digital ones, for two years and three years, respectively, the SEC said Thursday. They also agreed to give the money they'd received to the SEC and pay penalties and interest.

Mayweather failed to disclose that he'd received $300,000 from three different ICO issuers, including $100,000 from Centra Tech. Khaled failed to disclose a payment of $50,000 from the same company.

Centra has separately been charged by the SEC, which alleged that its ICO was fraudulent.

Centra could not immediately be reached for comment.

Both Mayweather and Khaled promoted Centra's ICO on their social media accounts. Khaled called it a "game changer" while Mayweather encouraged his followers to get in on the ICO, saying he'd taken part.

Mayweather also commented on another ICO, saying he was going to make a lot of money.

"You can call me Floyd Crypto Mayweather from now on," he tweeted.

The SEC, which has made it clear that ICOs can be fraudulent, encourages would-be investors to be wary of those ICOs that are endorsed by celebrities.

"With no disclosure about the payments, Mayweather and Khaled's ICO promotions may have appeared to be unbiased, rather than paid endorsements," said SEC Enforcement Division co-director Stephanie Avakian.

"Social media influencers are often paid promoters, not investment professionals, and the securities they're touting, regardless of whether they are issued using traditional certificates or on the blockchain, could be frauds," said Steven Peikin, another SEC enforcement division co-director.

This is the first time the SEC has brought charges against individuals for promoting ICOs and the investigation is ongoing.

Correction: The original headline of this article incorrectly stated the charges against Khaled and Mayweather Jr.

New York Coronavirus Cases

County data is updated nightly.

Cases: 2533155

Reported Deaths: 56222
CountyCasesDeaths
Kings33439110849
Queens31559610296
Suffolk2404693613
Nassau2149303300
Bronx2078026754
New York1685484637
Westchester1438522343
Erie1071301956
Richmond890341936
Monroe849411189
Orange57778920
Rockland53278779
Onondaga52461765
Dutchess35776500
Albany31074390
Oneida28870590
Broome24729409
Niagara24203398
Saratoga20485204
Ulster17349280
Schenectady16899229
Rensselaer14947170
Putnam1254198
Chautauqua12526175
Oswego11817115
Chemung11046157
St. Lawrence10701128
Steuben10273173
Ontario9436110
Jefferson900378
Cayuga8722107
Sullivan852683
Wayne827885
Cattaraugus7830118
Genesee7098132
Herkimer6875128
Clinton680740
Tompkins657459
Fulton6432104
Madison6266102
Montgomery6036142
Livingston580071
Warren557184
Cortland540180
Tioga518672
Columbia5043111
Chenango473388
Washington468467
Allegany468298
Otsego461755
Wyoming442858
Greene442087
Orleans440189
Franklin435222
Lewis364938
Delaware359148
Seneca276163
Essex236231
Schoharie232822
Yates167328
Schuyler155417
Hamilton4393
Unassigned15130
Out of NY0319
Utica
Cloudy
57° wxIcon
Hi: 54° Lo: 45°
Feels Like: 57°
Oneonta
Partly Cloudy
64° wxIcon
Hi: 70° Lo: 45°
Feels Like: 64°
Herkimer
Cloudy
57° wxIcon
Hi: 54° Lo: 47°
Feels Like: 57°
Old Forge
Cloudy
57° wxIcon
Hi: 51° Lo: 39°
Feels Like: 57°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Game Day Deals - New Deals Each Week
Chapter Aesthetic October Giveaway
Cool To Be Kind 2021
Looking for work or looking to hire? Check out the WKTV Job Fair!
Saluting Those Who Are Proud 2 Serve