The Securities and Exchange Commission debited former welterweight champion Floyd Mayweather with cryptocurrency fraud on Thursday, claiming Mayweather failed to…
The Securities and Exchange Commission debited former welterweight champion Floyd Mayweather with cryptocurrency fraud on Thursday, claiming Mayweather failed to disclose that he was paid to promote investments in the first crypto coin victims.
According to SEC, Mayweather did not report that he had received $ 300,000 from a total of three ICO issuers who paid him to market the offers online. One of these companies was Centra Tech, a company that has been charged separately by the SEC for a fraudulent ICO.
Mayweather used their social media accounts to encourage followers to join the Centers ICO with the promise to make it rich without revealing that he was paid by the company to approve their offer. The SEC calls for disclosure to ensure that paid endorsers do not mislead an audience to believe they offer an objective recommendation.
Mayweather pumped the Centers ICO on his Twitter account, tweeting that “starts in a few hours. Your before selling, I have mine.”
The boxer has settled with the SEC and comes as part of the his penalty is forbidden to market securities for three years. He collaborates with the SEC in his ongoing investigation and pays them the $ 300,000 he received, plus an additional $ 300,000 penalty and $ 1
4,750 in interest.
Music producer DJ Khaled was also paid to market Centers and was charged by the SEC on Thursday as well. He will have to fork over the $ 50,000 payment he received, plus a $ 100,000 penalty and $ 2,725 in interest.
Mayweather and Khaled are the first two people charged by the SEC to promote ICO.