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  • The SEC settled charges with two celebrities for failure to disclose promotional fees.
  • Pro boxer Floyd Mayweather and music producer DJ Khaled jointly will pay out nearly $800,000.

The US Securities and Exchange Commission charged Pro boxer Floyd Mayweather and music producer DJ Khaled for promoting initial coin offering in social media without disclosing the fact that they were paid for that.  

“Starts in a few hours. Get yours before they sell out, I got mine,”  Mayweather wrote in his Twitter; Khaled called the project a game-changer.

According to the settlement, announced on Thursday, Mayweather got $100,000, while Khaled received $50,000 payment from Centra Tech Inc. for pumping the token sales.  

Apart from that, Mayweather is accused of failing to disclose $200,000 for promoting other ICO projects on Twitter and Instagram.

The men neither admitted nor denied the charges, but agreed to pay the fines. Mayweather will pay over $600,000 including penalty and interest. Khaled will pay over $150,000.  

Earlier this year the SEC warned that some ICOs have features of security sales, carried out without proper registration with the regulator.