Floyd Mayweather and DJ Khaled charged in cryptocurrency fraud.

Floyd Mayweather and DJ Khaled
Floyd Mayweather and DJ Khaled

Boxer Floyd Mayweather Jr. and music producer DJ Khaled were charged with cryptocurrency fraud by the Security and Exchange (SEC). Both men failed to disclose payments they received for promoting investments in initial coin offerings, the agency said.

Neither Mayweather nor Khaled Mohamed Khaled admitted or denied the regulator’s charges, but agreed to pay a combined $767,500 in fines and penalties, the SEC said in a statement.

The SEC issued a warning about promotion of online fundraisers known as initial coin offerings (ICOs) on Nov. 1 last year.

“Any celebrity or other individual who promotes a virtual token or coin that is a security must disclose the nature, scope, and amount of compensation received in exchange for the promotion,” the SEC said in a public statement posted on its website.

Echoing this sentiment on Thursday, one of the directors of the SEC’s enforcement division, Steven Peikin, said that “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.”

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