Floyd Mayweather paid $300,000 to endorse fraudulent cryptocurrencies

Floyd Mayweather paid $300,000 to endorse fraudulent cryptocurrencies

The coin's founders were arrested in April on charges of securities and wire fraud, and today, Khaled himself agreed to pay a large sum for his role in the scheme.

Khaled talked up Centra Tech and its Centra cryptocurrency tokens on his social media accounts but didn't disclose a $50,000 payment from the company, the SEC said. The SEC mandates disclosure for the goal of ensuring that paid endorsers are not misleading an audience into believing they're offering an unbiased recommendation. Centra's ICO was sold as raising capital for a debit card system that would allow those with "cryptocurrencies" to spend money via a Centra Card backed by Visa or Mastercard. Hence, those who offer to sell them within the United States are required to comply with the existing securities legislation. Along with such huge fine, they have also been warned not to promote any crypto project until three years for Mayweather and two years for Khaled.

Mayweather told his followers to "Get yours before they sell out" while Khaled touted a "game changer" when promoting an initial coin offering (ICO) from Centra Tech.

Trouble keeps finding Floyd Mayweather, as the all-time great boxer was hit with a steep penalty handed down by the Securities and Exchange Commission. In contrast, Music director, DJ Khaled accused of failing to disclose a payment of $50,000 from the same firm, Centra Tech.

"You can call me Floyd Crypto Mayweather from now on", he said in another tweet, according to the SEC.

Floyd Mayweather Hit With Over Half-Million Dollar Fine For SEC Violation

Said by Stephanie Avakian, co-director of the SEC's enforcement division. Its latest settlement is the first time the SEC has gone after celebrity promoters of cryptocurrency projects however.

The case was settled outside of court, but Consequence Of Sound reports the SEC claims there is still an ongoing investigation into the two. Mayweather will pay $614,775, whereas Khaled will pay $152,725 to the regulator.

More specifically, crypto savants have drawn attention to the growing thought process that ICOs are a dying breed, exclusively due to the SEC's apparent classification of these products as securities.

In October, TMZ reported that investors had filed a class-action suit against Mayweather and Khaled for their role in promoting the alleged fraudulent scheme, seeking to recoup their losses.

Australian government calls for 'comprehensive review' of loot boxes
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