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Crypto-Money Advertising: High Penalties for US Celebrities



Professional boxer Floyd Mayweather and hip-hop star DJ Khaled were convicted of social media support for $ 300,000 ($ 263,000) and $ 100,000 (about $ 88,000). The US government said on Thursday (local time) in Washington.

According to DIP, Mayweather and Khaled pay an additional $ 300,000 ($ 263,000) and $ 50,000 ($ 44,000), it says that these amounts have earned the promotions for the coffin crypto. According to the agency, both through their social media advertised the Initial Coin Offerings (ICO) channels, without revealing that they were paid for.

Many cases of fraud

ICOs are digital IPOs. Movers can be used to raise funds from investors for projects by issuing and auctioning of crypto credits (coins). However, this indeterminate type of debt has long been very controversial and is often used in accordance with American oversight of fraud.

Floyd Mayweather Jr.

APA / AFP / Getty Images North America / John MCCOY

Professional boxer Mayweather made paid advertising about crypto money through social media – now he has to pay a fine

Even with the Center-ICO, which Mayweather and Khaled said, the DIP did not have the right to do so. In April, the agency has already filed a three-head suit behind the project for securities fraud. They say $ 32 million (about 28m euros) on the capital market were fake with false promises.

Warning about celebrity recommendations

"Investors should be skeptical about publishing investment advice on social media platforms and not making recommendations based on recommendations," warned DIP chief Steven Peikin. "Representatives of social media" are often paid promoters, not financial specialists.

Encouraged by Bitcoin – the most famous speculative facility among cryptic currencies – the digital money market reached its peak in 2017 – ICOs were also very much in fashion. Meanwhile, the past is over, and many investors who have boarded too late have suffered heavy losses. By the end of 2017, the price of Bitcoin fell from a record 20,000 to less than $ 4,000.

Contemptuously named "shitcoins"

ICOs are now considered frustrated in financial markets. Most of the small digital currencies, apart from the well-known heavyweights, such as Bitcoin, Ether, and XRP, even equate miserable existence. Many of them are now dubiously called "shitcoins" in the very scene.


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