Floyd Mayweather and DJ Khaled fined by the SEC
Boxer Floyd Mayweather and music producer DJ Khaled have been charged by the Securities and Exchange Commission (SEC) after both have failed to report payments they received through the promotion of cryptocurrencies.
In September last year Mayweather tweeted,
“Centra’s (CTR) ICO starts in a few hours. Get yours before they sell out, I got mine…”
As a result, he was paid $300,000 for the promotion by Centra Tech, a Miami-based company later accused of fraud by the SEC. Mayweather would then go on to promote various other ICOs and after failing to report his earnings, now must pay $600,000 in fines.
“This is a game changer here. Get your CTR tokens now!”
for which he only received $50,000, would end up costing him double the amount in fines.
The two share over 12 million followers on Twitter, giving Centra a wide audience to promote their cryptocurrency, CTR, which was later revealed to be a scam. SEC Enforcement Division Co-Director Steven Peikin stated investors need to “be sceptical of investment advice posted to social media platforms” and to refrain from making “decisions based on celebrity endorsements.”
What investors must realize is that although the celebrities have built vast amounts of wealth, they’re not always investment professionals. Always do your own thorough research first!