Crypto Celebs DJ Khaled And Floyd Mayweather Charged By SEC For “Unlawfully Touting” ICOs

Music producer DJ Khaled and boxer Floyd Mayweather Jr. were imputed by the Securities and Exchange Commission(SEC) on Thursday with promoting investments in initial coin offerings without revealing that they'd been paid.

Khaled and Mayweather came to an agreement with the SEC and accepted not to sell any securities, including cryptos, for two years and three years respectively. They also agreed to give back the money they'd received to the SEC and pay penalties with interest. Notably, Mayweather neglected to reveal that he'd taken $300,000 from three distinct ICO issuers, including $100,000 from Centra Tech, while Khaled failed to disclose a payment of $50,000 from the same company.

Mayweather's promotional work for Centra composed of a message to his almost 8 million Twitter followers that said that the ICO, “starts in a few hours. Get yours before they sell out, I got mine…” On a much more social media, Instagram, Mayweather wrote to his over 22 million followers that he predicted he would make a lot of money from another ICO and posted on Twitter, “You can call me Floyd Crypto Mayweather from now on.”

On the other hand, Khaled has nearly 13 million followers on Instagram and another 4 million on Twitter and used his influence to promote ICOs, calling the Centra Tech ICO a “Game changer.”

These cases highlight the importance of full disclosure to investors.

“With no disclosure about the payments, Mayweather and Khaled's ICO promotions may have appeared to be unbiased, rather than paid endorsements,”

said Enforcement Division Co-Director Stephanie Avakian.

Enforcement Division Co-Director Steven Peikin added:

“Investors should be skeptical of investment advice posted to social media platforms, and should not make decisions based on celebrity endorsements. 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.”

There will be further investigation by the SEC which both the celebrities agreed to cooperate. Notably, just last year SEC had issued a statement saying that celebrities can not promote investment products if they do not disclose the source, nature and amount they were being compensated with.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,269FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

PoolTogether's ‘No Loss' Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners

Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform...

Digital Assets Beat Traditional Assets by a Wide Margin & Ethereum Outperforms Bitcoin

In 2020 to date, Bitcoin has seen a positive performance of 80% and Ethereum 217%. With these gains, digital currencies are leading this year, with...

Filecoin Miners Will Receive 25% Of The FIL Rewards Immediately After A Successful Network Upgrade

Filecoin (FIL) miners set to receive 25% of their rewards instantly for miners that successfully activated the FIP-004 protocol at block number #170,000. Given...

PayPal Exploring Acquiring Crypto Companies, Already in Talks with Bitcoin Custodian BitGo

PayPal is now exploring acquisitions of crypto companies, including bitcoin custodian BitGo, reported Bloomberg. This week, Paypal announcing support, buy, sell, and hold for cryptos...

Bitcoin Is Having A “Sell-Side Liquidity Crisis,” As BTC Buyers Outweigh the Sellers

After an explosive start of the week that took us to a 13-months high of $13,300, Bitcoin is taking a breather just under $13,000. Interestingly,...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today