DJ Khaled (actual title 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 costs stem from promotional posts the 2 made concerning the bitcoin began by Centra Tech Inc. after receiving cash to advertise them—Mayweather didn’t disclose a $100,000 cost, whereas Khaled didn’t disclose a $50,000 cost.
Both Khaled and Mayweather have agreed to pay disgorgement, penalties, and curiosity, with out “admitting or denying” the findings of the fee. Khaled paid $50,000 again, along with a $100,000 penalty and $2,725 in curiosity. He additionally agreed to a two 12 months ban from selling any securities. Their circumstances are the SEC’s first circumstances involving touting violations relating to ICOs. Pitchfork has reached out to representatives for DJ Khaled for remark.
Read “What’s Behind Rap’s Love Affair With Cryptocurrency” over on the Pitch.