DJ Khaled, Floyd Mayweather Jr. charged with cryptocurrency fraud

DJ KhaledDJ Khaled The Securities and Exchange Commission (SEC) has charged music producer DJ Khaled and boxer Floyd Mayweather Jr. with promoting investments in initial cryptocurrency coin offerings without revealing that they had been paid.

The stock market regulatory authority on Thursday said that cryptocurrency coins sold in initial coin offerings (ICO) may be considered securities and subject to federal securities laws, reports CNN.

Both Khaled and Mayweather settled with the SEC and concurred not to advance any securities, even computerized ones, for a long time and three years, separately, it said.

They likewise consented to give back the cash they had gotten to the SEC and pay punishments with premium.

Mayweather neglected to reveal that he had gotten $300 000 (about R4.1m) from three distinctive ICO backers, including $100 000 (R1.3 million) from Centra Tech.

Khaled neglected to unveil an installment of $50 000 (about R683 995) from a similar organization.

Centra has independently been charged by the SEC, which affirmed that its ICO was fake.

Both Mayweather and Khaled advanced Centra’s ICO on their web-based social networking accounts. Khaled considered it a “distinct advantage” while Mayweather urged his devotees to get in on the ICO.

This is the first run through the SEC has brought charges against people for advancing ICOs and the examination was progressing.

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