Entertainment

Floyd Mayweather & DJ Khaled have been given huge cryptocurrency-related fines, because 2018 is confusing

Posted by
Tom Victor
Published
dj-khaled

Floyd Mayweather and DJ Khaled have both agreed to pay six-figure sums relating to their promotion of Initial Coin offerings

You should have figured out by now that 2018 is confusing as hell, and there’s no such thing as a news story from this year which is too bizarre to be believable.

After all, this is the year we encountered a football club faking a player’s death without his consent, and a snake eating a pigeon on an East London street, so nothing feels beyond the realms of possibility.

With that in mind, the idea that DJ Khaled and Floyd Mayweather have been handed ‘substantial’ fines for allegedly failing to declare accepting money to promote cryptocurrencies seems almost normal in comparison.

You may also like

I made £1k on cryptocurrency in two weeks and I don’t even know what a bitcoin is

According to the US Securities and Exchange Commission (SEC), both have agreed to pay six-figure sums after encouraging people to invest in Initial Coin Offerings (ICOs) without revealing they had been paid to make the endorsements.

“With no disclosure about the payments, Mayweather and Khaled’s ICO promotions may have appeared to be unbiased, rather than paid endorsements,” the SEC’S Stephanie Avakian said in a statement.

“Social media influencers are often paid promoters, not investment professionals, and the securities they’re touting, regardless of whether they are issued using traditional certificates or on the blockchain, could be frauds,” Enforcement Division Co-Director Steven Peikin added. 

producer

Both the boxer and the music producer are alleged to have taken payment from ICO issuers including Centra Tech Inc, which raised $32m in an ICO after social media endorsements from Mayweather and Khaled.

Sam Sharma and Robert Farkas, two of Centra’s co-founders, had multiple charges brought against them in April 2018, including conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud and wire fraud.

Mayweather posted a tweet in September 2017 saying “Centra’s (CTR) ICO starts in a few hours. Get yours before they sell out, I got mine”, while DJ Khaled – real name Khaled Khaled – posted about receiving a “titanium centra debit card” in the same months.

Tweets from both are still visible at the time of writing, though an Instagram post from Khaled appears to have been taken down.

As Alvakian’s statement reads: “We allege that Centra sold investors on the promise of new digital technologies by using a sophisticated marketing campaign to spin a web of lies about their supposed partnerships with legitimate businesses.

“As the complaint alleges, these and other claims were simply false.”

Floyd: stick to boxing non-boxers for cash, and Khalid, don’t you make enough from product placement already?

Most newsletters are rubbish. Ours isn't

(Images: Getty)

Topics

Share this article

Author

Recommended by Tom Victor

  • Tech

    Bitcoin is 10 years old: Here’s how much you’d have made if you invested in 2008

    Could you have become a bitcoin billionaire?

    Posted by
    Harvey Day
    Published
  • Tech

    This guy just came up with the best description of Bitcoin yet

    Don't understand cryptocurrency? You will now

    Posted by
    Dave Fawbert
    Published
  • Tech

    Are smartphone trading apps safe? The risky reality of the latest 'get rich' trend

    The high-stakes, high-returns world of trading is now something you can get involved with on your commute

    Posted by
    Edwin Smith
    Published

Other people read

More from Entertainment

More from Tom Victor