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DJ Khaled and Floyd Mayweather Jr have been fined by the Securities and Exchange Commission (SEC) for violating US financial rules by improperly promoting cryptocurrency.

dj khaled and floyd mayweather

The super-producer and DJ reached a settlement with the SEC in a deal, with the financial regulator also penalising boxer Floyd Mayweather Jr.

According to the SEC, both Khaled and Mayweather Jr. “failed to disclose payments they received for promoting investments in Initial Coin Offerings (ICOs).” The statement notes that this is the first time that the SEC has made cases to charge touting violations involving ICOs in the US.

Khaled failed to disclose a $50,000 payment from Centra Tech, which he had touted on social media as being a “game changer.”

Both Mayweather and Khaled neither admitted nor denied the claims but they each agreed to “pay disgorgement, penalties and interest”. Khaled agreed to pay $50,000 in disgorgement, a $100,000 penalty, and $2,725 in prejudgment interest, with his combined fines totalling $152,725.

“In addition, Mayweather agreed not to promote any securities, digital or otherwise, for three years, and Khaled agreed to a similar ban for two years,” the SEC’s statement added.

By Damilola Faustino

Read also: Akon Launches Cryptocurrency Called ‘Akoin’

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