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SEC imposes fines on Mayweather and DJ Khaled to promote an ICO CriptoNews



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The US Securities and Exchange Commission (SEC) imposed fines on Thursday the boxer Floyd Mayweather Jr. and to the musical producer Khaled Khaled not to reveal that they had received payments to promote the ICO of the Tech Center, held in September 2017.

According to an opinion from the SEC published on Thursday, the famous boxer He received $ 100,000 from Tech Center executives to promote the company's Initial Currency Offer (ICO). Similarly, the Stox and Hubii Network firms placed in the Mayweather account a total of $ 200,000 for the same purpose.

In another opinion of the regulatory body, it was emphasized that DJ Khaled received a payment of $ 50,000 from the Tech Center to promote this brand in their social networks.

In both communications, the SEC notes that promotional activities at Tech Center, on behalf of celebrities, seemed "impartial", but turned out to be paid endorsements to spread misleading information.

Floyd Mayweather Jr. he used his Instagram and Twitter accounts to post photos and comments in favor of the Tech Center ICO. Source: BlockInsider.

Tech Center was considered one of the most popular currency Initial Offers of Criptomercado, capitalizing a total of 32 million dollars in its financing round. However, it was soon discovered that the digital currency project, which offered a credit card for cryptomercats, was actually a financial fraud.

In the news the founders of the Tech Center face 65 years in prison, blamed for conspiracy and financial fraud. Project executives are tried to violate the law by selling to the United States a testimonial without the SEC authorization, as well as omitting information about the company and issuing false information about alleged affiliations with Visa, MasterCard and Bancord to distribute Some fake credit cards for digital currency.

Among the charges that weigh on the Tech Center case, it highlighted the misleading advertising that was spread by Mayweather and DJ Khaled on social networks. The celebrities used their Instragram and Twitter accounts to distribute photos and comments promoting the investment in the Initial Offer of Currency Tech Center, a strategy that moved to a large number of investors

DJ Khaled also received money to publish endorsement at Tech Center on its social networks, simulating that he did it impartially. Source: TechCrunch.

The participation in the project will cost the celebrities, since Mayweather will have to return the 300 thousand dollars received by the Tech Center to the regulatory authorities, with the obligation to deposit it within a period of 20 days at the Treasury of the State.

Additional to reimbursement, Mayweather will pay a fine of $ 300,000 and expenses for prepaid interest that are estimated at $ 14,775. According to the opinion of the SEC, the boxer is prohibited from promoting "any digital value or another type" during three years and will continue to appear before the authorities to give more information about his case, which is still is in process

Khlaed will have to return the $ 50,000 received to promote the ICO, i You will have to pay a fine of 100 thousand dollars and payments for legal services that are estimated at $ 2,725. The DJ is also prohibited from promoting securities on their social networks for a period of 2 years.

Both statements state that, if fines are not paid, the same will accrue interest in the monetary civil fine of each individual. In the same way, they also emphasized that the charges were imposed on both personalities, since in 2017 – before they decided to participate in the ICO – the authorities had clarified that the digital currency could be sold as securities and, therefore , they had to submit to the SEC regulations.

Featured image for Yingko / stock.adobe.com

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