Floyd Mayweather Jr. and DJ Khaled charged for cryptocurrency fraud

SEC has said that cryptocurrency coins sold in initial currency offerings can be regarded as securities and subject to federal securities laws.

Both Khaled and Mayweather settled with the SEC and agreed not to promote any securities, even digital, for two years and three years respectively. They also agreed to return the money they had received to the SEC and pay penalties with interest.

Mayweather failed to reveal that he had received $ 300,000 from three different ICO issuers, including $ 100,000 from Centra Tech. Khaled failed to hand over a payment of $ 50,000 from the same company.

The centers are separately paid by the SEC, which claimed that the ICO was fraudulent.

Centers could not be reached immediately for comments.

Both Mayweather and Khaled Promoted Centers ICO on their social media accounts. Khaled called it a "game changer" while Mayweather urged his followers to come to ICO and said he had participated.

Mayweather also commented on another ICO, saying that he would earn a lot of money.

"You can call me Floyd Crypto Mayweather from now on," tweeted him.

SEC, which has made it clear that ICOs can be fake, encourage investors to be careful or avoid the ICOs approved by celebrities.

"Without transparency on payments, Mayweather and Khaled's ICO campaigns can prove to be objective, rather than paid endorsements,"

. "Social media often affect payments, not investors, and the securities they re-touting, regardless of whether they are issued using traditional certificates or blockchains, may be fraudulent," said Steven Peikin, SEC's enforcement director.

This is the first time the SEC has brought charges against individuals for promoting ICOs and the investigation is under way.

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