Boxer Floyd Mayweather & DJ Khaled & # 39; charged by the SEC for token offers

WASHINGTON – Boxer Floyd Mayweather Jr. and a music producer known as "DJ Khaled" have not revealed the payments they've received to promote their investments in initial coin offerings , said Thursday the Securities and Exchange Commission (SEC).

Neither Mayweather nor Khaled Mohamed Khaled admitted nor denied the regulator's charges, but agreed to pay a combined total of $ 767,500 in fines and penalties, the SEC said in a statement.

Reuters reported this week the rise of self-proclaimed social media personalities, who charge thousands of dollars for their positive comments on crypto-currencies without disclosing their investments in this asset.

The SEC issued a warning on promoting online fundraisers, called the Initial Coins Offering (ICO), on November 1st.

"Any celebrity or other individual promoting a token or virtual security coin must disclose the nature, scope and amount of the compensation received in exchange for the promotion," the SEC said in a public statement posted on its website. .

Echoing this sentiment Thursday, Steven Peikin, director of the SEC, said that "social media influencers are often paid promoters, not investment professionals, and the titles they boast about, that they be issued certificates or on the blockchain, could be frauds ".