Floyd Joy Mayweather Jr., American professional boxer, and producer DJ Khaled charged with promoting cryptocurrency projects in 2017 and violating US financial law.

The US Securities and Exchange Commission (SEC) announced settled charges against professional boxer Floyd Mayweather Jr. and music producer Khaled Khaled, known as DJ Khaled for failing to disclose payments they received for promoting investments in Initial Coin Offerings (ICOs). Both persons charged with violating the US securities laws agreed to pay fines totaling more than $750,000.

According to the US securities legislation, when selling securities, companies must disclose advertising costs. The SEC categorizes the majority of ICO tokens as securities.

According to the SEC, Mayweather received $300,000 for advertising three ICO projects, including $100,000 from Centra Tech. Centra Tech was accused of fraud in 2018. DJ Khaled received $50,000 for advertising promotion of the same scam ICO.

A post on Mayweather's Instagram account predicted he would make a large amount of money on another ICO and a post to Twitter said: "You can call me Floyd Crypto Mayweather from now on." 

Mayweather agreed to pay $300,000 in disgorgement, a $300,000 penalty, and $14,775 in prejudgment interest. Khaled agreed to pay $50,000 in disgorgement, a $100,000 penalty, and $2,725 in prejudgment interest.

"Investors should be skeptical of investment advice posted to social media platforms, and should not make decisions based on celebrity endorsements," said Enforcement Division Co-Director Steven Peikin. "Social media influencers are often paid promoters, not investment professionals, and the securities they’re touting, regardless of whether they are issued using traditional certificates or on the blockchain, could be frauds."