US SEC Charges DJ Khaled, Floyd Mayweather, For Not Disclosing Payments to Shill Centra ICO

After months of investigation, the US Securities and Exchange Commission charged professional boxer Floyd Mayweather and Khaled Khaled, known as DJ Khaled, for promoting the token sale of Centra while not disclosing payments. Celebrity promotion has been viewed as especially harmful, as it increases the reach of token sales and misleads buyers. Celebrity endorsements sell tokens to persons outside the crypto community, where knowledge and skepticism are not so widespread, and buyers may be misled based on testimonies of past cryptocurrency gains.

Mayweather received payments for three ICOs in total, including $100,000 from Centra Tech Inc. Khaled received $50,000 before touting the ICO on social media. Mayweather promoted two other ICOs for a payment of $200,000.

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