Floyd Mayweather and DJ Khaled agree to pay SEC’s fines for promoting scam ICO

30 Nov, 2018 | Updated: 30 Nov, 2018
by Fifi Arisandi
News
Floyd Mayweather and DJ Khaled agree to pay SEC’s fines for promoting scam ICO

Floyd Mayweather and DJ Khaled learned a hard lesson as they agreed to pay the fines from the Securities and Exchange Commission (SEC) for promoting scam ICO project. 

Two renowned public figures, Floyd Mayweather and DJ Khaled who were reported for being sued for promoting scam ICO have reached a final settlement with the Securities and Exchanges Commission (SEC).

To recap, both figures were actively promoting the ICO of Centra Tech back in 2017, during which Mayweather said, “You can call me Floyd ‘Crypto’ Mayweather from now on”, while Khaled claiming the company and its products as a “game changer”.

Read more: DJ Khaled and Floyd Mayweather reportedly being sued after endorsing ICO scam

The company managed to raise as many as $32 million from the ICO, part of the amount was said to be the result of the celebrity endorsements.

For their activities, Khaled and Mayweather are charged for pumping ICOs, without informing investors they were actually getting paid for doing the promotional activities.

Both decided to settle with SEC’s charges without either admitting or denying the findings and agreed to pay the fines stated in the document.

Mayweather will pay a total of $614,775, $300,000 in disgorgement, $300,000 penalty, and $14,775 in interest. Khaled, on the other hand, will pay $50,000 in disgorgement, $100,000 penalty, and $2,725 in interest.

In addition, both also agreed to cooperate during the investigation, and accepted the ban for promoting securities, 3 years for Mayweather, 2 years for Khaled, as reported by CNBC.

Both celebrities refused to disclose the exact amount they earned from promoting the ICO, however, Khaled is said to have received $50,000, while Mayweather received $100,000 from Centra Tech.

Despite the warning from the SEC that those who offer or promote ICOs may face federal securities laws as the coins sold may be securities, there are still celebrities who seem hard to resist the promotional reward offered by fraudulent companies.

Earlier this month, rapper T.I. was reported to face $5 million lawsuit for promoting a failing ICO project.

Related to the failing Centra Tech's ICO, the founders were arrested in April this year and are currently facing civil charges from the SEC and criminal charges from the Justice Department.

Read more: Acclaimed Rapper T.I being sued for $5 million after failed crypto project

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