Floyd Mayweather Jr, DJ Khaled

Boxer Floyd Joy Mayweather, Jr., left, and hip-hop producer DJ Khaled Mohamed Khaled, right, were charged with securities fraud and ordered to pay nearly $1 million in fines for promoting a cryptocurrency ICO scam on social media.

The feds charged Mayweather, 41, and Khaled, 43, with illegally promoting an Initial Coin Offering (ICO) on social media.

An Initial Coin Offering is similar to an Initial Public Offering (IPO), but investors buy cryptocurrency coins instead of company shares (stocks).

The feds allege that Mayweather and Khaled promoted cryptocurrency investments to their unsuspecting Instagram.com and Twitter.com followers by directing them to invest in Centra, Stox.com, and other cryptocurrency companies.

Mayweather is accused of taking $100,000 from Centra Tech and $200,000 from two other companies to promote cryptocurrencies to potential investors.

Floyd Mayweather Jr

In multiple Instagram.com posts, Mayweather claimed he earned millions of dollars in the cryptocurrency market. He directed his followers to purchase cryptocurrency coins through companies that paid him.

In one post, Mayweather posed on a private jet with stacks of cash laid out on the table in front of him. He captioned the image: "Champion Predictions: I'm gonna make a $hit t$n of money on August 26th."

He added: "Im gonna make a $hit t$n of money on August 2nd on the Stox.com ICO."

Floyd Mayweather Jr

In another photo on Instagram.com, Mayweather boasts: "Spending bitcoins ethereal and other types of cryptocurrency in Beverly Hills with my Titanium Centra Card. Join Centra's ICO on Sept. 19th #TMT #TBE."

Securities and Exchange Commission (SEC) officials filed a civil action against Centra Tech's founders, alleging their ICO was fraudulent.

Officials from the U.S. Attorney's Office for the Southern District of New York also filed criminal charges against Mayweather and Khaled that could land them in a federal prison for a minimum of 10 years.

Mayweather was ordered to pay $600,000 in fines plus $14,775 in interest, while Khaled was hit with fines of $150,000 and $2,725 in interest.

Additionally, both Mayweather and Khaled are banned from promoting cryptocurrencies online or offline for two years.

Mayweather and Khaled are awaiting trial on the federal charges.

The Feds previously warned celebrities and their management about promoting products and services on social media without informing their followers that they are being paid for endorsing the products.

Celebrities must include the words "AD" or "PAID PROMOTION" in their social media posts to avoid prison time or federal fines.

  • Ihatemoney

    Mayweather should have enough money to make the problem go away? ? Atleast anything over a million in legal defense can allow you to get away with murder.

  • Coy little wink

    People are so dumb...

    Isn't crytopcurrency fake?

  • ClaireHuxtable

    This is what happens when you don't read the fine print for yourself. When you're rich, you pay other rich people to keep you rich. Yet you need to know enough to be able to go behind them and check things out for yourself. Ask questions until you feel comfortable.
    Hire people to oversee the overseers. Guard your brand and yo butt.

  • WutizstillHERE!

    You have to be smart with Crypto. To the masses that don't know how to do it.. they will get burned.. To me its like when the internet first came out and all the online business made a ton of money in the beginning. Crypto seems like that. When Bitcoin hit almost 20,000 a pop..alot of people cashed out rich..but now people are purchasing hoping they purchased another booming coin..and some are bait just to get your money and then they crash.

  • http://thedevereauxshow.com/ Ms.Devereaux

    Isn’t flat tummy tea fake? And all that other crap those ppl get PAID to promote I would buy something and avarge person tells me about before a PAID celebrity these ppl will sell they momma for a coin ion trust or want nothing they have to offer. Some ppl actually believe that if ornate wasn’t real or didn’t work them celebrities wouldn’t be allowed to promote it sadly they are mistaken

  • Bossy704

    Hawking cryptocurrency like flat tummy tea. For shame.

  • ClaireHuxtable

    If you don't know what you're doing...stay out of it. Read, read, read until you understand it.

  • ClaireHuxtable

    People always want to take the quick way to wealth and health.

  • WutizstillHERE!

    Exactly.. when a rich person put in a million and lose half..won't hurt..average person drops 10,000 and loses half..HURT! So its important to be wise!

  • Scromes1212

    Nothing like the internet but I get your point

  • Scromes1212

    I got lawyers watching lawyers so I don't go broke
    Biggie

  • Scromes1212

    You would think so but he spends what he makes smh that's why he about to fight again soon.

  • n1kk1a

    He didn’t type that....

  • ClaireHuxtable

    Exactly. Trust no one 100% with Your $money$.

  • TMW

    And again, who’s taking investment advise from celebrities when all they do is flaunt their excess and often fake spending habits? I’m so confused!

  • ClaireHuxtable

    You're right. Half the stuff we see they don't even own.

  • Renee26

    Now they know Floyd couldn't read the contract ? no excuse for Khaled...where are the receipts of his crime...why we only get Floyd's??

  • jeniefrumdabloc™

    got nothing for this too busy trying to figure what I'm eating tonight ..... Who with a brain fawks with floyd ..... unless they ego based .... bye https://uploads.disquscdn.com/images/c1425c997ed3319b16098cad0d4bebaabde80cd22860d557863b4ff2c949aed9.gif

  • jeniefrumdabloc™

    there aren't no shortcuts to that ... so folks can keep trying ..... any shortcut will fail .... and has never worked ..... it all crumbles ......

  • Mr.LeBrickJames

    Doesn't seem like that much of a "crime" to me on Floyd and Khaled's part. They probably just took the money and didnt know much about the product they were endorsing. Seems like a waste of taxpayer money trying to prosecute them further over this. A $1-million dollar fine seems like enough punishment to me.

  • Fire & Ice

    I'm always leery of anyone who's extremely materialistic and flashy. People like that tend to be willing to say and do anythingfor money.

  • Mama Dee’s Wig Maker

    Smh...

  • jeniefrumdabloc™
  • jeniefrumdabloc™

    LOLOLOLOL

  • Gail

    Classic example of ignorance. They have no idea how cryptocurrency works. They probably don't even know how the stock market works. Stick to making music, and leave the investment advice to the people who actually have a high school degree lol.

  • ClaireHuxtable

    "any shortcut will fail"
    In some areas there is no substitute for doing the hard work. Daily work.

  • jeniefrumdabloc™

    FOR A FUGGA that can't even read ...... anyone dealing with this cat gets just what they deserve

  • jeniefrumdabloc™

    There are no shortcuts.... you can work smarter ..... but the reality is .... there are no shortcuts..... folks that have built their empire .....welll I can tell ya..... their not in the media...... completely behind the scenes stacking ... firm foundations...... the ones out there .... being seen .... are the frauds...... that's a little tea for you ..... Real G's move in complete silence..... you know why ???? Cause jealous fuggas still trying to get to where they are...... One key component....... we never tell .....something a simp has a hard time doing because they too busy trying to be seen .....(EGO DRIVEN) ..... Folks who got it don't flex .... they don't have to..... their demeanor .... their character ....says it all https://uploads.disquscdn.com/images/c1425c997ed3319b16098cad0d4bebaabde80cd22860d557863b4ff2c949aed9.gif

  • Fire & Ice

    You're so right! It's a HUGE red flag.

  • ClaireHuxtable
  • jeniefrumdabloc™

    Your spirit knows the difference ..... we are not ego based ..... lust ..... etc fame (wanting to be seen) .... hell we are seen ......the ones that flex have the issue..... so Good for you ...... Much love ..... https://uploads.disquscdn.com/images/cda4925ca1d357264787be9b5ccd589f4b0940cb9442847e1840c0a193a331e3.gif

  • Navybeans95

    Dummies...they got it...nothing much to see here...

  • HalleMerry

    But Floyd is illiterate right? Who in thee hell would take advice from him,he can't even read his own contract?????

  • ClaireHuxtable

    Yep. My friend's dad is a millionaire in a totally boring yet necessary industry...concrete. You'd never know they have money by looking at them.

  • Bashi22

    How would they know it’s a scam to begin with just asking???

  • HalleMerry

    ??

  • Jack Blakk

    I don't invest or do anything because a celeb says so.

  • Skin Deep Beauty

    What they have to pay back is just a drop in the bucket RIGHT? Their PAID, RIIIIGGHHHT?
    They need some humble time and a REAL LIFE KNOCKOUT CHECK!! ALL the foolishness they BLOW money on!! Greedy show offs!

  • Gail

    Never take investment advice from someone who isn't CERTIFIED to give it. The problem is you won't know you've been scammed or ill advised until your money is gone. There are Bernue Madoff and scammers EVERYWHERE. As for Cryptocurrency, even CNBC hosts are clueless.

  • Blue

    Yeah I don't look to these two for investment advice.

  • jeniefrumdabloc™

    Well folks sort of know with my father ... because I call him the Brooks Brother ..... but chile ... on his side they call him the rich uncle ... but what they don't know .... my mother and her brothers and sisters are also extremely wealthy .... very ...... we been low key and will stay low key ... simply put ..... we just love each other and personally only focus on (our) family ...... and that's it ..... we have stayed humbled .... and that right there got us all our wealth ...... all of it ..... giving to those in need ..... not flexing ... don't get me wrong we love nice things and have nice things ...... but we helped so many without looking for anything in return .... and still do it ..... very giving people ... including myself .... we love to help ...... because we know folks need it ... unfortunately we attract a lot of thieves .... which wears on us ..... but we are very strong for one reason (Integrity) ..... we keep our integrity and Faith ...... much love

  • Gail

    Then they should've made it clear that they were paid promoters.

  • ClaireHuxtable

    "They probably didnt know much about the product they were endorsing."
    Therein lies the problem.

  • jeniefrumdabloc™

    smart man Blue .... Much love <3

  • ClaireHuxtable

    When your hands are open in giving they are also open to receive. It's cyclical.

  • Fire & Ice

    Same to you beautiful lady ?

  • Fire & Ice

    ???

  • Blue

    Thanks Jenie

  • jeniefrumdabloc™

    exactly stay open period ..... when you're closed .... can't receive nothing .... a closed fist ... chile ... gets ya no where smh

  • http://thedevereauxshow.com/ Ms.Devereaux

    Oooooo yes you are RIGHT!!! Very simple way to put that

  • Bashi22

    Ok good answer so are you saying their lawyer will have a good case base on them not knowing

  • Gail

    I don't think they'll win. What Khalen/Floyd did was fradulent, and their ignorance is no excuse. They didn't heed SEC warnings which required them to identify as paid promoters. They profited from the fraud. And, I think most importantly, they had the financial means to get QUALIFIED Counsel before engaging. They clearly were looking to make a quick buck, and didn't care who they harmed...that's shark bait for the SEC.

  • bemetoo

    But how can charge them with a crime for promoting something like stocks and bonds

  • pure_rachet

    You gonna put some money on the rose rush card?

  • Li-Wright

    They're all crooks.

  • jason rite

    This Neeegro cannot even count his own money let alone a whole other currency!

  • MRiGOThim

    If they did the same thing why is Mayweather paying more money than DJ Khaled?????

  • staywoke

    this is true, but there is more to this story:

    Most ICO's aro scams.
    however- there is more to this story:
    EVERYONE made money from IC0's...however once the SEC realized young, people of color, regular folk was making money like 50k off of a 100 dollar investment, they made U..S. participation illegal--citing it was for our on safety. The United states work force is a slave system- what whould that mean if suddenly aquired "the slaves" had life changing wealth. Crypto currency is the future and while YES it can be scammy if you don't do due diligence.
    It is a solid way to acquire wealth.

    The SEC is using these tow as a scapegoat to lure people away from this thought process. Do you know how many people they could have went after???

  • staywoke

    Most ICO's aro scams.

    however- there is more to this story:

    EVERYONE made money from IC0's...however once the SEC realized young, people of color, regular folk was making money like 50k off of a 100 dollar investment, they made U..S. participation illegal--citing it was for our on safety. The United states work force is a slave system- what whould that mean if suddenly aquired "the slaves" had life changing wealth. Crypto currency is the future and while YES it can be scammy if you don't do due diligence.

    It is a solid way to acquire wealth.

    The SEC is using these tow as a scapegoat to lure people away from this thought process. Do you know how many people they could have went after???

  • Faux Gibbler

    He made a lot more money. A ton more money.

  • Faux Gibbler

    This was a scam. There’s an article in the N.Y. Times about this last year that called attention to it

  • Faux Gibbler

    The problem is they acted like they are were actually investing money in it when in fact they were just being paid to promote it- which the whole thing was a fraud.

  • Faux Gibbler

    I still don’t understand bitcoin.

  • Faux Gibbler

    No. They posted pretending to be investing in the company which they were not— they were just taking money to post on social media.

  • WutizstillHERE!

    I am very aware of the money possibilities in crypto. I have skin in the game as we speak. But the average person just thowing money in the ring without due diligence will be influenced and then scammed. Yes just like weed until they could find a way to get their cut, they are going with its illegal