Wednesday, February 19, 2020

Floyd Mayweather And DJ Khaled Settle Crypto Charges In SEC

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Elizabeth Jamie
Jamie Elizabeth is a Mass Communication Graduate from the Philippines, knowledgeable in the field of cryptocurrencies, blockchain etc., currently enjoying freelance writing, and able to write anything under the sun.

After the troubles behind the controversy between the company Centra Tech and world-boxer Floyd Mayweather and rapper-producer DJ Khaled, the two personalities decided to settle everything in court.

Mayweather and Khaled’s Involvement

As reported by BTCNN, Mayweather and Khaled were the official crypto endorsers of Centra Tech —  a crypto start-up company that was introduced back in 2017. These two expressed their interest and support for Centra Tech in their social media accounts stating that the company was the ‘game changer’ in the crypto space. Mayweather even announced himself as Floyd ‘Crypto’ Mayweather after saying that he fully support the products under Centra Tech.

Unfortunately, Mayweather and Khaled were bashed after TMZ reported that Centra Tech was actually behind a federal offense of crypto scam. This controversy became massive that the victims of the crypto scam under Centra Tech decided to filed a case against the two endorsers.

After the investigation of US Securities and Exchange Commission (SEC), Mayweather and Khaled were forced to face the charges stating that the two endorsers “failed to disclose payments they received for promoting ICOs” which as a punishment, they need to pay fines in accordance with the court’s decision.

As a matter of fact, Mayweather was said to received $100,000 in promoting Centra Tech while another $200,000 was received through promoting other two unnamed ICOs. Having the same charges was Khaled that was reported receiving $50,000 from promoting Centra Tech.

Although the two personalities didn’t admitted nor denied the accusations against them, they quickly answered to the court’s demands regarding the case which involves them paying SEC’s fines. An additional punishment was put against them by the court stating that they cannot promote any crypto-related products or companies in a set period of time (three years for Mayweather and two years for Khaled).

Even celebrities cannot get away with SEC

SEC reminded every crypto and supporter of crypto to follow the laws under SEC especially these times that the industry is struggling to be part of each country’s currency. SEC set the example with Mayweather and Khaled’s that even famous personalities cannot be exempted with the rules.

“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,” said Stephanie Avakian, co-director of the agency’s Enforcement Division.

As of now, the case against the two are still being investigated by the court. However, cases similar to this may have to be more aware especially the personalities that is now involved with crypto-related businesses.

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