The US Securities and Exchange Commission says the celebrities didn’t disclose payments they received for promoting ICOs, or initial coin offerings.
Music producer DJ Khaled and boxer Floyd Mayweather have settled with the US Securities and Exchange Commission over charges that they promoted investments in initial coin offerings without disclosing the payments they received in return, the SEC said Thursday.
The commission said this was the first time it had brought such charges involving the touting of cryptocurrency offerings.
Khaled talked up Centra Tech and its Centra cryptocurrency tokens on his social media accounts but didn’t disclose a $50,000 payment from the company, the SEC said. Mayweather also didn’t disclose promotional payments from three ICO issuers, including Centra Tech, which gave him $100,000, the commission added. Mayweather once tweeted that Centra’s ICO “starts in a few hours.
