SEC Fines Floyd Mayweather For Illegal Advertising Of ICO
The US Securities and Exchange Commission (SEC) has charged a sportsman Floyd Mayweather Jr. and a musician DJ Khaled with the illegal advertising of an ICO, according to the press release.
The regulatory authority found that Mayweather did not report on the receipt of money for participating in advertising of several ICO projects, including payment of $100,000 from Centra Tech. DJ Khaled also hid information about receiving $50,000 from the same company.
In May 2018, SEC accused the three Centra founders of fraud during the ICO in 2017, when they managed to raise $32 million.
The athlete and the musician did not comment on their offenses but agreed to pay fines, $600,000 and $150,000, respectively. Moreover, the Commission decided to prohibit Mayweather from promoting any securities for three years, and DJ Khaled will not be able to advertise such projects for two years.
Investors should not decide on participation in ICO projects based on their advertising involving celebrities, Steven Peikin, the SEC staff member, stated.
Mayweather began promoting Centra’s ICO in the fall of 2017. He stated in the ad that he used the Titanium Centra card to make money transactions with bitcoin and ether.
Meanwhile, The Coin Shark reports that Jay Clayton, SEC Chairman, announced at Consensus that the Commission will monitor ICOs more closely, as the number of fraudulent projects in this sphere continues to grow.
As previously reported, SEC has launched an investigation into the Salt’s token sale.