SEC Charges DJ Khaled for Illegally Promoting Cryptocurrency
He and Floyd Mayweather Jr. failed to disclose payments received for promoting Centra Tech’s initial coin offering. They have agreed to pay penalties
DJ Khaled (real name Khaled Khaled) and boxer Floyd Mayweather Jr. have been charged by the U.S. Securities and Exchange Commission (SEC) for “failing to disclose payments they received for promoting investments in Initial Coin Offerings (ICOs).” The charges stem from promotional posts the two made about the cryptocurrency started by Centra Tech Inc. after receiving money to promote them—Mayweather failed to disclose a $100,000 payment, while Khaled failed to disclose a $50,000 payment.
Both Khaled and Mayweather have agreed to pay disgorgement, penalties, and interest, without “admitting or denying” the findings of the commission. Khaled paid $50,000 back, in addition to a $100,000 penalty and $2,725 in interest. He also agreed to a two year ban from promoting any securities. Their cases are the SEC’s first cases involving touting violations regarding ICOs. Pitchfork has reached out to representatives for DJ Khaled for comment.