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DJ Khaled, Floyd Mayweather Jr. accused of cryptocurrency fraud

The SEC has stated that cryptocurrency coins sold in initial currencies can be considered as securities and subject to federal securities laws.

Both Khaled and Mayweather agreed with the SEC and agreed not to promote any titles, including digital ones, for two years and three years, respectively. They also agreed to return the money they had received to the SEC and pay penalties with interest.

Mayweather did not disclose that he received $ 300,000 from three different ICO broadcasters, including $ 100,000 from Centra Tech. Khaled has not revealed a payment of $ 50,000 from the same company.

Centra was charged separately by the SEC, which claimed that its ICO was fraudulent.

Centra was not immediately reachable for comment.

Both Mayweather and Khaled promoted Centra's ICO on their social media accounts. Khaled called it a "game changer" while Mayweather encouraged his followers to enter ICO, saying he had taken part.

Mayweather also commented on another IOC, saying that he would make a lot of money.

"You can call me Floyd Crypto Mayweather from now on," he tweeted.

The SEC, which made it clear that ICOs may be fraudulent, encourages prospective investors to distrust or avoid those ICOs that are endorsed by celebrities.

"Without any disclosure on payments, Mayweather and Khaled & # 39; s ICO may have appeared to be impartial rather than paid endorsements"

"Social media influencers are often paid promoters, not investment professionals, and the titles they are promoting, regardless of whether they are issued using traditional or blockchain certificates, could be frauds," said Steven Peikin, head of SEC monitoring division director.

This is the first time the SEC has filed charges against individuals to promote ICO and the investigation is underway.

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