Floyd Mayweather and DJ Khaled have both been charged by the SEC for failing to disclose payments they received for promoting a cryptocurrency, and have already agreed to pay hundreds of thousands of dollars in penalties.
According to a press release from the Securities Exchange Commission, Mayweather and Khaled failed to "disclose payments they received for promoting investments in Initial Coin Offerings."
The SEC says Mayweather failed to disclose payments from Centra Tech Inc. for $100,000. Khaled failed to disclose a $50,000 check he allegedly received from Centra Tech.
Mayweather allegedly made an extra $200,000 from another company to promote other ICOs.
The two founders of Centra Tech, Sam Sharma and Robert Farkas, were arrested earlier this year after using Mayweather and Khaled to promote their coin and sell $32 million of cryptocurrency in the ICO, but later proved to be frauds.
The SEC says, "Without admitting or denying the findings, Mayweather and Khaled agreed to pay disgorgement, penalties and interest." Mayweather will pay penalties totaling over $600,000 and DJ Khaled will pay penalties over $150,000.
Both stars also agreed not to promote any securities, digital or otherwise, for years. Mayweather agreed to three years, and Khaled for two.
This is a developing story...