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Floyd Mayweather and DJ Khaled on Thursday settled civil lawsuits against the Securities and Exchange Commission, which accused celebrities of failing to disclose the payments they had received for promoting their initial offerings of coins.
Mr. Mayweather, the undefeated boxing champion, would have received hundreds of thousands of dollars from three ICO issuers he allegedly failed to disclose, including a company called Centra Tech. The SEC said that Khaled Khaled, the musician known as DJ Khaled, had not disclosed a $ 50,000 payment for promoting Centra Tech's OI.
The US securities regulator said the two men were promoting digital currency offers despite the fact that the SEC warned in 2017 that coins sold in country offices were subject to securities laws.
"These cases highlight the importance of full disclosure to investors," said Stephanie Avakian, co-director of the SEC's enforcement division, in a statement. "In the absence of disclosure of payments, Mayweather and Khaled's promotions appeared to be unbiased, rather than paid endorsements."
Mr. Mayweather has agreed to pay more than $ 600,000 in penalties and reimbursement, while Mr. Khaled will pay more than $ 150,000. No man admitted or denied the SEC's findings.
Charles Spada, Khaled's lawyer, declined to comment. Mr. Mayweather's lawyers did not immediately return a request for comment.
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