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The United States Securities and Exchange Commission (SEC) has settled charges against professional boxer Floyd Mayweather Jr. and music producer Khaled Khaled – better known as DJ Khaled – for failing to disclose that he's "out". they had been paid to promote initial coin offers.
Announced Thursday, the regulator said Mayweather had received $ 100,000 from Centra Tech, as well as $ 200,000 from Stox and Hubii Network.
Khaled received $ 50,000 to promote Centra Tech, according to the agency.
The co-founders of Centra Tech were indicted by a grand jury earlier this year on charges of fraud and conspiracy.
In a statement Thursday, Stephanie Avakian, co-director of the SEC's "En Enforcement" division, said that "in the absence of disclosure regarding payments, Mayweather and Khaled's promotions might appear to be unbiased , rather than paid endorsements ".
Neither celebrity has acknowledged nor denied the charges against him. Mayweather will pay $ 300,000 in restitution, $ 300,000 in fines and $ 14,775 in prejudgment interest. Khaled will pay $ 50,000 in restitution, $ 100,000 in fines and $ 2,725 in prejudgment interest.
In addition, the two companies are prohibited from promoting "all values, digital or otherwise," over the next few years; Mayweather has accepted a three-year ban, while Khaled's will last two years.
The SEC added that Mayweather will continue to cooperate with her investigation, which is ongoing.
This decision comes more than a year after the agency warned celebrities that it may have been illegal to promote investment products if they 'do not disclose the nature, the source and the amount of the remuneration paid … in exchange for the endorsement ".
Image of the SEC emblem via Shutterstock
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