Former welterweight champ, Floyd Mayweather charge by Securities and Exchange Commission (SEC) of the US for failing to disclose the details of the Cryptocurrencies paid for promotion related to initial coin offerings.
The former boxer failed to report about the $300,000 he received for taking part in three ICO events, the promoters paid him online. One of the three company is Centra Tech, that has been charged by SEC for a fraudulent ICO.
By using social media Mayweather encouraged his followers to invest in Centra’s ICO offering, the disclosure is a mandatory process so that SEC can make sure that the endorsers are not misleading the general public by providing biased information.
Earlier Mayweather tweeted,
starts in a few hours. Get yours before they sell out, I got mine
to boost Centra’s ICO sale.
Mayweather got a deal from the SEC and he is prohibited from promoting any securities for three years also he is ordered by the authorities to pay the $300,000 he received for promotion along with an additional $300,000 as a penalty with the interest of $14,775.
DJ Khaled, music producer was also involved with the promotion of Centra and he is also charged by the SEC. The $50,000 he received for the promotion should be returned with the penalty of $100,000 and $2,725 interest.
These are the first two celebrities to be charged by SEC for promoting ICOs.