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Floyd Mayweather and DJ Khaled settle for the CBS prosecution

In this file taken on August 10, 2017, Boxer Floyd Mayweather Jr. goes through the moves during the media work at the Mayweather Boxing Club in Las Vegas, NevadaImage copyright
AFP / Getty

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Floyd Mayweather Jr is hit by the DIP box box

Boxer Floyd Mayweather Jr and music producer DJ Khaled will pay thousands of dollars to settle charges for violating American financial laws.

The Securities and Exchange Commission announced a resolution Thursday.

The US financial regulator stated that men were unable to disclose the payments they received to promote certain cryptodontic investments.

Men did not admit or reject the allegations, but agreed to pay a combined $ 750,000 fine.

Two cases were the first to bring DIP offenses involving initial money supply or ICO, a relatively new investment vehicle associated with cryptic currencies.

ICO allows people to invest in a company by buying "tokens" or "money" issued by them.

Despite the new language, the SEC warned investors that many bids offer as investments that are governed by existing securities laws.

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These rules require publication of payments in exchange for publicity.

In this case, the DIP stated that Mr. Mayweather received $ 300,000 to promote three separate bids, including one from Centra Tech, Miami, which DIP accused of fraud in April.

Mr. Mayweather's promotions have included a message to Twitter followers that the Center's ICO "starts in a few hours. Give it up before it's sold, I've got my …"

The same company, Mr. Khaleda, paid $ 50,000, the DIP said.

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Getty Images

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DJ Khaled will pay thousands of dollars to settle DIP's charges

The post at Mayweather's Instagram account predicted he would make a large amount of money on another ICO, and the post on Twitter said, "You can call me Floyd Crypto Mayweather from now on."

Two men are sending offers to millions of social media followers without disclosure of payments, according to settlements.

"This is a money changer here. Give your CTR streams now!" Mr. Khaled wrote in a post quoted by DIP.

The SEC said that Mr. Khaled agreed to return the $ 50,000 he was granted for approval, as well as a $ 100,000 fine and interest.

Mr. Mayweather will return the $ 300,000 he has received, as well as a fine and $ 300,000.

Coordinator of the DIP Coordinator Steven Peikin said the cases were a reminder that investors should be "skeptical about investment advice published on social media platforms and should not make decisions based on celebrity recognition."

"Representatives of social media are often paid promoters, not investment experts, and securities that send them, regardless of whether they are issued using traditional certificates or on a block network, may be fraud," he said.

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