US SEC Files Charges Against Floyd Mayweather Jr & DJ Khaled
The US Securities and Exchange Commission (SEC) files charges against Floyd Mayweather Jr and DJ Khaled over token offerings.
The American professional boxer Floyd Mayweather and the music producer DJ Khaled are now facing charges after failing to show the payments they have received for endorsing investments in initial coin offerings.
SEC said that both Mayweather and Khaled agreed to pay $767,500 worth of fines and penalties but did not admit or denied the regulator’s charges.
The agency was accusing both celebrities of failing to disclose the promotional fees they have received from Centra Tech, Inc.
SEC Enforcement Division co-director Stephanie Avakian said that it was the first time that both celebrities have faced charges involving ICOs.
The Commission accuses DJ Khaled of being unable to reveal a $50,000 promotional payment and Floyd Mayweather of $100,000.
“With no disclosure about the payments, Mayweather and Khaled’s ICO promotions may have appeared to be unbiased, rather than paid endorsements,” Avakian said.
The US SEC also said that anyone who promotes virtual token or coin is required to reveal the amount of compensation they have received for the promotion.
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