Today an article came across my desk regarding Floyd Mayweather and DJ Khaled in trouble with the SEC for promoting cryptocurrencies without disclosing their promotional relationship with the companies.
They were being paid by various cryptocurrency companies including Centra Tech. The U.S. Securities And Exchange Commission alleges that Mayweather received $300,000 from three separate cryptocurrency companies, including $100,000 from Centra Tech. DJ Khaled also received $50,000 from Centra Tech.
In a settlement with the SEC, both men agreed to pay back the payments they received to the Commission, as well as a penalty with interest. Mayweather also promised not to promote any securities for three years, and Khaled will promise the same for two years.
Centra Tech has been charged separately on fraud allegations by the SEC. Neither Khaled nor Mayweather has addressed the matter directly.
Sohrab “Sam” Sharma, Robert Farkas and Raymond Trapani, who co-founded Centra Tech Inc, were each charged with securities fraud, wire fraud and two conspiracy counts, according to an indictment filed with the U.S. District Court in Manhattan.
Prosecutors said the defendants, who live in Florida, misled investors in Centra tokens that they had formed partnerships with Visa Inc, MasterCard Inc and Delaware-based The Bancorp Inc to issue debit cards, among other allegations.