Floyd Mayweather Jr and DJ Khaled habe the true honour of being the first people to be charged by the Securities and Exchange Commission for dodgy conduct around initial coin offerings (ICO) of cryptocurrency.
Amidst the Bitcoin and cryptocurrency craze, there have been a lot of ICOs – which more or less just refers to the first time a new cryptocurrency or coin becomes available for purchase. Both Khaled and Mayweather acted as celebrity endorsements for a coin, and the SEC alleges they did not properly disclose payments.
According to the SEC, Mayweather failed to disclose a $100,000 payment from Centra Tech Inc, and Khaled disclose a $50,000 payment from the same company. Additionally, the SEC says, Mayweather received $200,000 for promoting two other ICOs.
As a penalty – but without admitting or denying the charge – Mayweather has paid a total of $614,775 in disgorgement, penalties and fines. Khaled paid $157,725. That’s a fair chunk of coin for your coin.
Failing to disclose that you are receiving money to promote an ICO is a violation of United States federal law. It’s neither here nor there when it comes to these particular charges, but authorities have previously alleged that Centra Tech Inc was operating illegally and deceiving investors.
Both Mayweather and Khaled have agreed to promote any kind of currency –Mayweather for three years, and Khaled for two.Image: AP