Boxing legend Floyd Mayweather and music Producer DJ Khaled penalized by the Securities and Exchange Commission for not disclosing the amount received through a promotion of Initial Coin Offerings (ICOs).
The settlement was announced by the Securities and Exchange Commission (SEC) on Thursday. As per the Securities and Exchange Commission, the two players are the first one to get charges regarding ICOs. There was a payment of $100,000 received in the account of Mayweather which he didn’t disclose. Similarly, Khaled also received a payment worth $50,000.
The charges, however, all not admitted by the two men. In fact, they were ready to give penalties without disclosing or admitted the truth. The Securities and Exchange Commission is investigating on the matter further.
Social Media Promotion
Pro boxing player Mayweather was endorsing the ICOs on various social media platforms. On Twitter, he wrote, “Starts in a few hours. Get yours before they sell out, I got mine.”
According to SEC, Mayweather was calling ICOs a game changer on his social media accounts. Mayweather didn’t even disclose the amount $200,000 he received in order to promote the other two Initial Coin Offerings. On his Instagram account he posted that with the other ICOs, he can make a lot of money.
“From now onwards, you can call me Floyd Crypto Mayweather” he tweeted.
As already warned by the Securities and Exchange Commission that the coins which are sold in ICOs need to be checked under securities, and the people who are willing to offer them should comply the laws of federal securities.
Penalties and Ban
A civil charge was filed in this year against the founders of Centra; that said ICOs were fraud. Meanwhile, another case was filed by the Justice Department that covers the charges of parallel crime.
In disgorgement, Mayweather will pay around $300,000, which includes a penalty of $300,000 and interest of $14,775. On the other hand, Khaled has to pay $50,000, with $100,000 in a penalty, and $2,725 in interest. Khaled has no problems with the two-year ban, and Mayweather said that he won’t promote the securities for the next three years. Both of them decided to cooperate with the SEC investigation.