The SEC Charged DJ Khaled and Floyd Mayweather With Crypto Fraud
The two celebrities didn't disclose that they were paid to promote an ICO.
The Securities and Exchange Commission (SEC) charged both DJ Khaled — infamous for his opposition to reciprocating oral sex — and Floyd “Crypto” Mayweather with cryptocurrency-related crimes on Thursday.
Apparently, both took money to promote companies’ initial coin offerings (ICOs), a common fundraising strategy for tech startups. But they didn’t disclose those payments, CNN reports, making this the first time the SEC has charged anyone for promoting an ICO.
By and large, there’s no reason to be surprised that these two celebrities ended up in hot water: Mayweather made $300,000 promoting three separate ICOs. The company behind one of them, Centra Tech, also paid Khaled $50,000 to the same end. The two failed to disclose these payments during their promotions, which just so happened to involve cryptocurrency.
As with all things cryptocurrency, it seems that there’s a lot of money invested in hyping up a tech company’s prospects — but not much substance backing people’s investments.
READ MORE: DJ Khaled, Floyd Mayweather Jr. charged with cryptocurrency fraud [CNN]
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