DJ Khaled and Floyd Mayweather will pay more than $767,000 to settle SEC case
Miami music producer DJ Khaled will pay a total of $152,725 and boxing champion Floyd Mayweather will pay a total $614,775 to settle a Securities and Exchange Commission case against each for improper investment promotion, the SEC announced Thursday afternoon.
Each talked up Initial Coin Offerings on social media during 2017 without letting his considerable audience know he was getting promotional payments from the company he was touting.
The company at the center of the issue is Centra Tech, incorporated in Delaware on July 27, 2017, according to documents on the State of Florida’s corporate registry. Centra’s ICO was sold as raising capital for a debit card system that would allow those with “cryptocurrencies” to spend money via a Centra Card backed by Visa or Mastercard.
On Sept. 24, 2017, Khaled posted to his Instagram (12.9 million followers) and Twitter (3.9 million followers) accounts a photo of him holding a Centra Card with, “I just received my titanium centra debit card. The Centra Card & Centra Wallet app is the ultimate winner in Cryptocurrency debit cards powered by CTR tokens! Use your bitcoins, ethereum, and more cryptocurrencies in real time across the globe. This is a Game changer here. Get your CTR tokens now!”
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