Saturday , November 27 2021

Mayweather and DJ Khaled, fine on promoting cryptocurrencies


US regulators fined the boxer Floyd Mayweather and promoted music DJ Khaled with hundreds of thousands of dollars on Thursday to promote cryptocurrency investments without notifying them that they were charging to do so.

The SEC said the two cases were the first to violate the promotion of cryptocurrencies.

The two men publicly promoted the first ICO proposals, in which investors exchanged cash or other digital currencies for unopened cryptocurrency units without disclosing that the issuers, including Centra Tech Inc., were paid for it, according to the SEC.

Centra Tech's founders were charged in May with federal charges of fraud.

According to the SEC, MayWather and Khaled used social media to promote the value of ICO.

Khaled called it a "turning point," while Maywater told Twitter users: "Get yours before they run out.

The defendants neither admitted nor denied the allegations of the SEC.

Stephanie Akian, co-chairman of the SEC's Compliance Division, said in a statement that the agreements underscore the need for full disclosure to investors.

"Without information about the payments, MayWather's promotion and Khaled's may seem impartial and non-paid promotions," he said.

Maywater agreed to pay a fine of $ 300,000, and he would compensate another 300,000 for unprofitable profits. Khaled, for his part, agreed to pay a fine of $ 100,000 and return another $ 50,000.

Last year, the SEC warned that digital currencies sold at UCI can be treated as securities, and those who offer and sell them must comply with US securities laws.

Under the current chairman, Jay Clayton, the SEC focused on cryptocurrencies and fraud in retail investments.The critics of this initiative say that the agency drastically reduced its efforts to regulate the main financial institutions.

Source link