Music producer DJ Khaled and boxer Floyd Mayweather Jr. were charged on Thursday by the Securities and Exchange Commission (SEC) over cryptocurrency fraud.
The SEC has said that the duo have been promoting investments in initial cryptocurrency coin offerings without revealing that they’d been paid.
The commission added that the cryptocurrency coins sold in initial coin offerings may be considered securities and subject to federal securities laws.
Both Khaled and Mayweather settled with the SEC and agreed not to promote any securities, even digital ones, for two years and three years, respectively.
They also agreed to give back the money they’d received to the SEC and pay penalties with interest.
Mayweather failed to disclose that he’d received $300,000 from three different ICO issuers, including $100,000 from Centra Tech. While Khaled failed to disclose a payment of $50,000 from the same company.