Cryptocurrencies have been in controversy for obvious reasons and it appears that several celebs have now been caught in scandals surrounding it. One of the most recent of such frauds to come to the forefront is that of Floyd Mayweather and DJ Khaled who apparently failed to disclose their involvement with Centra Tech for a paid ICO promotion.
As clarified by The Securities and Exchange Commission (SEC), the men had failed to disclose the payments that they received to promote certain cryptocurrency investments in violation of U.S Financial laws. As per reports, Mayweather was paid $100,000 USD and DJ Khaled $50,000 USD to promote a virtual currency by the start-up Centra Tech. In return for the hefty amounts, the celebs advertised the ICO on social media, with tweets that read, “Get yours before they sell out, I got mine,” with a link to the Centra token website. They also posted several promotional posts on Instagram in support of the alleged crypto roll-out.
However, within months the founders of Centra were arrested and charged with fraud, which called for further scrutiny on Mayweather and Khaled’s advertising posts. As per the last update, the celebrities have agreed to give back all of the money they received for those promotions along with additional fines. Mayweather will pay $300,000 USD that he received from Centra and two other digital coin firms, along with an additional $300,000 USD penalty, and will serve a three-year ban on promoting other digital coins. DJ Khaled, on the other hand, will pay back $50,000 USD from Centra and a $100,000 USD fine.