November 30, 2018

DJ Khaled and Floyd Mayweather are Charged in Alleged Cryptocurrency Fraud

DJ Khaled and Floyd Mayweather are Charged in Alleged Cryptocurrency Fraud

Photo credit: Jamie McCarthy / Robin L Marshall / Getty Images 

Music mogul, DJ Khaled, and boxer Floyd Mayweather has been fined by the Securities Exchange Commission. According to the SEC’s settlement announcement, the two failed disclose that they received payments for a promotion.

Mayweather allegedly failed to disclose payments from Centra Tech, Inc. for $100K. DJ Khaled also failed to disclose that he was also paid $50K for his promotion via his Instagram.

“These cases highlight the importance of full disclosure to investors,” said Stephanie Avakian, co-director of the SEC’s enforcement division, “With no disclosure about the payments, Mayweather and Khaled’s ICO promotions may have appeared to be unbiased, rather than paid endorsements.”

The three founders of Centra Tech were arrested earlier this year, after using both Floyd and DJ Khaled  for promo and fraudulently raising more than $25 million from investors.

Mayweather agreed to pay more than $600,000 in penalties, while Khaled will pay more than $150,000.

Safe to say this was a lesson learned.

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