The SEC is cracking down on cryptocurrency, and the celebs who promote it and the first victims are DJ Khaled and Floyd Mayweather Jr.

The SEC indeed secured the bag.

The head of The Money Team and We The Best general have both agreed to pay significant fines, more than $600,00 for Mayweather and more than $150,000 for Khaled. According to NBC News, both men didn’t admit or deny guilt but agreed to not  “promote any securities, digital, or otherwise” for multiple years.

Khaled and Mayweather Jr getting the hammer brought down them for such is a first according to The Daily Beast which states:

“This is the first SEC case pursuing violations over coin offerings.”

In a statement released yesterday, Stephanie Avakian, the co-director of the SEC’s enforcement division said on the matter:

“These cases highlight the importance of full disclosure to investors.  “With no disclosure about the payments, Mayweather and Khaled’s ICO promotions may have appeared to be unbiased, rather than paid endorsements.” 

The punishment for both celebrities was inevitable since Centra Tech Inc., the Miami-based ICO issuer’s primary founders were indicted by a federal grand jury back in May in New York City for “having solicited investors to buy unregulated securities,” according to an NBC report.

Cryptocurrency fraud is definitely not a major key, but we are sure both of their bank accounts will be fine. The SEC’s actions should scare any other celebrities who are involved with crypto schemes going forward.

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Photo: Kevork Djansezian / Getty

Source: HipHopWired.com