The US Securities and Exchange Commission (SEC) has settled charges against DJ Khaled and Floyd Mayweather Jr. for illegal ICO…
The US Securities and Exchange Commission (SEC) has settled charges against DJ Khaled and Floyd Mayweather Jr. for illegal ICO campaign. Both celebrities have agreed to pay the financial penalties without acknowledging or denying the results.
In an official release dated November 29, the SEC has announced a settlement of charges against music producer DJ Khaled and professional boxer Floyd Mayweather Jr. for failure to disclose the payments they have received to promote the first coin offer.
According to the Commission, Mayweather received $ 1
00,000 and DJ Khaled – $ 50,000 from Centra Tech Inc. to promote the company’s ICO. In addition, the professional boxer had received $ 200,000 to market other two ICOs.
SEC claims that the promotional documents from both celebrities came after the DAO report issued by the Commission in 2017 warned that coins are sold in ICO may be securities. Therefore, those who offer to sell them in the United States must comply with current securities laws.
Given the importance of complete disclosure, Stephanie Avakian, Enforcement Division Co-Director, said:
These cases highlight the importance of full disclosure to investors. […] It is not worth noting that Centra Tech’s founder was arrested in April and charged with a $ 60 million ICO fraud in May.
close to $ 800,000 in fines and market ban
According to the release, both Mayweather and DJ Khaled agreed to pay sanctions and interest without acknowledging or denying the Commission’s conclusions.  Mayweather paid $ 300,000 in disgorgement, $ 300,000 in penalty and $ 14,775 in advance interest. DJ Khaled, on the other hand, paid $ 50,000 in disgorgement, $ 100,000 punishment and $ 2,725 in preference interest.
Both celebrities have been banned from promoting digital or other securities – Mayweather for three, while DJ Khaled for two years. 19659013] Centra Tech adds DJ Khaled to the mix “width =” 980 “height =” 613 “/>
Enforcement Division Co-Chair Steven Peikin explained the importance of proper due diligence regarding celebrity and influenza- Approved offers:
Investors should be skeptical about investment advice published on social media, and should not make decisions based on celebrity reports. […] Social media often affect promoters, not investors, and the securities they practice, whether issued with traditional certificate or blockchain may be fraud.
This marks another action in continuation of the Commission’s squeeze on ICO that does not comply with the Securities Act. Earlier this month, the SEC escaped by AirFox and Paragon ICOs by $ 250,000.
What do you think of the SEC’s movements to require ICOs to comply with the securities rules? Do not hesitate to Notify us in the comments below!
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