DJ Khaled & Mayweather ICO Lawsuit Gets An Update

DJ Khaled & Mayweather ICO Lawsuit Gets An Update

The boxing champ Floyd Mayweather and music giant DJ Khaled have had charges settled against them by the United States Securities and Exchange Commission since they failed to disclose payments they received for promoting the now obsolete cryptocurrency company CentraTech to millions of followers on social media.

As reported by The Next Web, both celebrities made a pretty penny out of the now failed Initial Coin Offering with the boxing icon making $100,000 and DJ Khaled pocketing $50,000 to promote the defunct firm. However, neither of the Hollywood stars made this known to the public.

Nevertheless, this didn’t prevent either of them to promote the cryptocurrency on social media with DJ Khaled dubbing CentraTech as a game-changer while Mayweather invited all his Instagram followers to participate in its ICO.

As a consequence of doing this, the boxer has agreed to a pay over $600,000 in penalties whereas DJ Khaled seemed to get out with a much smaller fine of, but still a significant amount of $150,000. Mayweather has promised the SEC not to promote securities for three years and for DJ Khaled, he has promised not to do it for two years.

The Exchange Commission has mentioned that Mayweather has also failed to disclose any payments that he has received for two other ICOs which have yet to be named.

Stephanie Avakian, the co-director at Enforcement Division spoke on the matter and said:

“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.”

It’s worth noting that the United States security watchdog had first started an investigation into the two celebrities months in October which after they had charged the founders of CentraTech back in October. Ever since then, the SEC has also released a statement in order to warn investors against trusting celebrity endorsed cryptocurrencies and related ventures.

What are your thoughts? Let us know what you think down below in the comments!

Investment Disclaimer
Related Topics: