If you have been in following the news or been in the cryptocurrency space for a while now, you would probably be familiar with the case surrounding Floyd and DJ Khaled from their involvements in fake ICO projects to them not paying taxes on cryptocurrency projects they endorsed.
On Thursday, Floyd Mayweather and DJ Khaled settled pending civil charges with the Securities and exchange commission on allegations that the pair failed to disclose the payments they got for their promotions of cryptocurrency projects.
It is said that Mayweather received several hundreds of thousands from 3 ICOs among which was that from Centra Tech. It is reported that he received over $200,000 on two other ICOs for promotions after which he took on to twitter saying “You can call me Floyd Crypto Mayweather from now on.”
DJ Khaled is also said to have received $50,000 in payments for promotions relating to the same company, Centra Tech, whose founders were earlier arrested and detained in relation to the ICOs.
“These cases highlight the importance of full disclosure to investors… with no disclosure about the payments, Mayweather and Khaled’s ICO promotions may have appeared to be unbiased, rather than paid endorsements” Stephanie Avakian, co-director of the SEC’s enforcement division.
According to the CNBC, the two celebrities have agreed to a payment deal with Floyd Mayweather the famous boxing champion agreeing to pay over $600,000 in penalties and disgorgement plus 14,775 in interests. DJ Khaled will also be paying more than $150,000 of which will be $50,000 in disgorgement, $100,000 in penalty plus $2,725 in interest.
What are your thoughts on these payments? Do you think the SEC took the right steps?
Let us know your thoughts in the comment section below.