Floyd Mayweather and DJ Khaled settled with the Securities and Exchange Commission on Thursday after they were charged with marketing cryptocurrency companies and not letting people know they were paid for it.
They’re also the first individuals, as opposed to entire companies, who’ve been slapped with such SEC charges.
According to the SEC, when cryptocurrency is being promoted to bring in early investors, it falls under the securities category, so certain regulations have to be followed, which both men failed to do.
Mayweather has since agreed to stop promoting any kind of securities, financial or digital, for three years and Khaled for two years. Both also agreed to give the SEC payment they received from the cryptocurrency companies, plus pay penalties with interest.
CNN Business reports that the retired fighter received $300,000 from three different companies, one of them being Centra Tech, who was charged by the SEC with establishing a fraudulent initial coin offering, which is known as an ICO. Khaled was paid $50,000 by Centra Tech.
The boxer and producer promoted the company on their social media accounts as well.
“You can call me Floyd Crypto Mayweater from now on,” Mayweather once tweeted. And Khaled said Centra Tech is a “Game changer.”
