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: 2012806

Reported Deaths: 51732
CountyCasesDeaths
Kings26711410025
Queens2656739604
Suffolk1945123323
Nassau1782353121
Bronx1760716405
New York1330424342
Westchester1262782246
Erie835241718
Richmond713901760
Monroe617161036
Orange46388782
Rockland45849946
Onondaga36254663
Dutchess28147438
Albany23800347
Oneida21556498
Niagara18486335
Broome17559348
Saratoga14517163
Ulster13159244
Schenectady12471193
Rensselaer10745136
Putnam1027491
Chautauqua8459137
Chemung7209133
Oswego703490
Ontario693992
Steuben6355142
St. Lawrence624695
Sullivan621070
Cayuga591590
Jefferson548765
Wayne530467
Cattaraugus521382
Genesee5102121
Herkimer4946107
Clinton458233
Madison432186
Fulton412288
Tompkins407749
Livingston403858
Montgomery3923117
Columbia3848100
Cortland356960
Tioga345058
Warren341856
Wyoming328251
Otsego322147
Allegany320483
Greene315674
Chenango313874
Washington287955
Orleans280183
Lewis248134
Franklin241312
Delaware219537
Seneca188956
Schoharie156816
Essex150826
Yates111226
Schuyler99314
Hamilton3012
Unassigned13864
Out of NY0218
Rome
Cloudy
37° wxIcon
Hi: 39° Lo: 25°
Feels Like: 25°
Binghamton
Cloudy
31° wxIcon
Hi: 38° Lo: 25°
Feels Like: 21°
Rome
Cloudy
37° wxIcon
Hi: 41° Lo: 27°
Feels Like: 25°
Rome
Cloudy
37° wxIcon
Hi: 35° Lo: 22°
Feels Like: 25°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Saluting Those Who Are Proud 2 Serve
Enter the Rock Your Body Giveaway from Alivana Aesthetics
Looking for work or looking to hire? Check out the WKTV Job Fair!