The US Securities Commission (SEC) filed charges against DJ Khaled and Floyd Mayweather Jr for the unlawful promotion of ICO. Both celebrities agreed to pay financial penalties without acknowledging or denying the results.
Failure to detect
In an official release of November 29, the SEC announced the filing of charges against DJ Khaleda's music producer and Floyd Mayweather's Jr. professional boxer. because of the failure to postpay payments they received to promote the initial money supply.
According to the Commission's statement, Mayweather received $ 100,000 and DJ Khaled – $ 50,000 from Centra Tech Inc., to promote ICO. In addition, a professional boxer has also received $ 200,000 to promote two more ICOs.
DIP argues that the promotion acts of both celebrities came after the DAO report issued by the Commission in 2017, warning that money sold at ICOs could be securities. So those who offer them to sell to the US must comply with existing securities legislation.
Talking about the importance of full disclosure was Stephanie Avakian, executive vice president, who said:
These cases emphasize the importance of fully detecting the investor. […] Without publishing payments, the promotion of ICP Mayweather and Khaleda may seem impartial and unpayed.
It is worth noting that Coalitioners of the Center Techa were arrested in April and filed an indictment of $ 60 million for ICO in May.
Up to $ 800,000 in penalties and ban promotions
According to the release, Mayweather and DJ Khaled agreed to pay penalties and interest without acknowledging or denying the results of the Commission.
Mayweather paid $ 300,000 in disbelief, $ 300,000 in fines, and $ 14,775 for a foul. On the other hand, DJ Khaled paid $ 50,000 in disbelief, $ 100,000 in punishment, and $ 2,725 for misdemeanor interest.
Both celebrities are forbidden to promote digital or other securities – Mayweather for three, and DJ Khaled for two years.
Executive Director Steven Peikin emphasized the importance of proper attention when it comes to celebrities and stimulating bids:
Investors should be skeptical about investment advice published on social media platforms and should not make decisions based on celebrity recommendations. […] The influences of social media are often paid promoters rather than investment experts, and the securities that send them, regardless of whether they are issued by common certificates or on a block network, may be fraudulent.
This is another action in the continuation of the Commission's discontinuation on ICOs that do not respect the securities laws. Earlier this month, the DIP had robbed AirFox and Paragon ICO with $ 250,000 in fine.
What do you think about the moves of the SEC to require ICOs to comply with securities regulations? Do not hesitate to let us know in the comments below!
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