The SEC charged Floyd Mayweather for being held in Crypto fraud on Thursday. As Mayweather did not disclose that he was paid for promoting investments in ICOs.
Companies involved in crypto fraud
As per SEC, Mayweather didn’t express that he received $300,000 from three ICO issuers who paid him to promote the offerings. Centra Tech was one among those companies. SEC had already charged this company for fraudulent ICO.
He did this by encouraging his Social Media followers to join Centra’s ICO. Promising to strike at the higher rates and not disclosing that he is paid to endorse their offering. Finally, SEC disclosed that paid endorsers should not mislead the audience into believing that they offer unbiased recommendation.
May weather boosted Centra’s ICO on his Twitter account, tweeting that it “starts in a few hours. Get yours before they sell out, I got mine”. He is now a part of the punishment and is also banned from promoting any securities for three years. He decides to cooperate with SEC and pay them the $300,000 he received. Additionally pays $300,000 penalty and $14,775 in interest.
Along with Mayweather, the music producer DJ Khaled was also a part of this crypto fraud. He too was paid to promote Centra and was also charged by SEC on Thursday. He should fork the payment of $50,000 that he received, along with $100,000 penalty as well as $2,752 as interest. Mayweather and Khaled are the first two individuals charged for promoting ICOs.
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