The SEC announced on Thursday it has settled charges against boxer Floyd Mayweather and rapper DJ Khaled for “unlawfully touting” initial coin offerings (ICOs). And they are to pay hefty penalties for failing to disclose money they were paid to promote investments in cryptocurrencies on their social media account, regulators said Thursday.
Mayweather was paid by three different ICO issuers, including $100,000 from a company called Centra; Khaled also received $50,000 from Centra.
The Securities and Exchange Commission, (SEC) said the charges were the first it has ever brought involving what are known as initial coin offerings or ICOs.
Officials previously said the company behind the coin was operating illegally, misleading investors and several of the execs listed on the company website doesn’t really exist. The whole thing was essentially deemed a giant scam.
Mayweather agreed to pay $300,000 in disgorgement, a $300,000 penalty, and $14,775 in prejudgment interest. Khaled agreed to pay $50,000 in disgorgement, a $100,000 penalty, and $2,725 in prejudgment interest.
Mayweather also agreed to keep “cooperating with the investigation,” which may mean the enforcement net against anyone connected to Centra will keep expanding. As part of the settlement, neither celebrity admitted or denied wrongdoing.