Andrew D. Bernstein | National Basketball Association | Getty Images
Floyd Mayweather Jr. talks with DJ Khaled after the match between the Golden State Warriors and the Los Angeles Clippers on February 20, 2016 at the STAPLES Center in Los Angeles, California.
Professional boxer Floyd Mayweather and music producer DJ Khaled increased their initial coin offerings without informing investors that they were receiving promotion fees, according to a settlement announced Thursday.
Mayweather did not disclose Centra Tech Inc.'s $ 100,000 promotional payment, while Khaled did not disclose a $ 50,000 payment.
The two men settle the charges without admitting or denying the conclusions. The SEC says its investigation is ongoing.
Mayweather praised Centra's ICO on his Twitter account saying "it starts in a few hours, take yours before they're sold, I've got mine." Khaled called it a "game changer" on his social media accounts, the SEC said.
Mayweather also failed to disclose US $ 200,000 for the promotion of two other country offices. He posted on his Instagram account that he would earn a lot of money with another ICO. On Twitter, he boasted "You can call me Floyd Crypto Mayweather now".
The SEC warned last year that coins sold in country offices could be securities and that those who offer them must comply with federal securities laws. Earlier this year, the agency filed a civil complaint against the founders of Centra, claiming that the ICO was fraudulent. The Department of Justice has filed parallel criminal charges in this case.
Mayweather will pay $ 300,000 in restitution, a fine of $ 300,000 and $ 14,775 in interest. Khaled will pay $ 50,000 in restitution, a penalty of $ 100,000 and $ 2,725 in interest. Mayweather also agreed not to promote the securities for three years and cooperate with the investigation. Khaled accepted a two-year ban.