Boxing legend Floyd Mayweather and music producer DJ Khaled have been charged by the SEC with fraud, and have agreed to pay a total $750,000 to settle federal regulators’ charges that they failed to disclose payments they received for promoting investments in digital-currency securities.
The settlement of civil charges was announced Thursday by the Securities and Exchange Commission. The agency says they are its first cases involving charges for violating rules on touting investments in so-called initial coin offerings, or ICOs.
The SEC said Mayweather failed to disclose promotional payments from three issuers of ICOs, including $100,000 from Centra Tech Inc. Khaled allegedly didn’t disclose a $50,000 payment from Centra, which he touted on his social media accounts as a “game changer.”
They are still being sued by more than a few investors who now say it was just a scam.
