Pay up, and keep it pushing. Mayweather and Khaled settle with SEC

Boxing legend Floyd Mayweather and music producer DJ Khaled are paying a total $750,000 to settle charges they failed to disclose payments they received for promoting investments in digital-currency securities, federal regulators said Thursday. The SEC said the charges are the first for violating rules on touting investments in so-called initial coin offerings – or ICOs – on three different cryptocurrencies.

An ICO allows a startup to use the technology behind bitcoin, known as blockchain, to fund projects. The SEC said Mayweather did not report that he had received $300,000 from three separate deals from that paid him to promote the offerings online.


Under the settlements, Mayweather agreed to pay a $300,000 penalty, give up another $300,000 and pay $14,775 in interest. Khaled is paying a $100,000 penalty, giving up $50,000 and paying $2,725 in interest.

They also agreed not to promote any securities, digital or otherwise, for three years in Mayweather’s case and two years for Khaled.

Mayweather and Khaled were among a number of celebrities paid by ICOs to endorse them. ICOs have soared in popularity in recent years, raising billions for startups. With an ICO, a startup will issue currency, sometimes called a token, which can be used to buy services from the company. For example, a startup offering online storage could issue tokens that can be used to buy storage.


Don't worry we don't spam

Show full profile

Every journal depends on its editors, editorial board and COMMUNITY for success! Janette Brown, Craig Levitts & Kim Zhao.

Reset Password
Compare items
  • Total (0)