The US Securities and Exchange Commission announced on Thursday that music producer DJ Khaled and boxer Floyd Mayweather Jr. will pay thousands of dollars to settle charges over their violation of the US financial laws.
According to the statement, both celebrities failed to disclose payments they received to promote certain crypto currency investments. Mayweather and Khaled were said to have promoted Centra's ICOs without disclosing payments.
According to SEC, Mayweather had gone on his Twitter handle to write: ‘starts in a few hours. Get yours before they sell out, I got mine,’ while DJ Khaled took to his social media platform to call it a ‘game changer’.
While the two accused neither admitted nor denied the claims, they reportedly agreed to pay combined penalties that sums up to over $750,000.
In a statement, Steven Peikin, Co-Director SEC Enforcement Division, called on investors to be skeptical of suggestions on investment that emanate from social media platforms and avoid making decisions based on celebrity endorsements.
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