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SEC imposed penalties against Boxer and DJ, due to crypto-currency – Coin Hero

SEC imposed penalties against Boxer and DJ, due to crypto-currency

Home News SEC imposes sanctions against Boxer and DJ, due to crypto-currency

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Matthias Nemack –
30.11.2018

Even if the SEC is increasingly open to products related to Bitcoin, like ETFs seems. On the subject of advertising for the crypto world, the Supervisory authority is still extremely critical and a little squeamish.

Hidden advertising is fined

With Floyd Mayweather currently one of the most famous faces in the US Boxzirkus on the list of persons who have been punished by the U.S. securities and exchange Commission currently. The professional boxer had made advertising for crypto-currencies and products in this area. Of the authority, this has been a thorn in the side of – you referred to the activities in their assessment as “unfair paid advertising”, and refers to the high risks associated with investments in currencies such as Ethereum, and especially derivatives such as ETFs in connection to the crypto markets. Crypto to the authority occurs currencies are now more open to on than even a few years ago. Mayweather pays at least according to current reports, a penalty of US $ 300,000. In addition, the world-famous Boxer continues to pay the same sum, since this is supposed to have met his “salary” for the promotional activities.

The lack of identification of the ICO advertising in the criticism

Mayweather is, in a sense, in good company. DJ Khaled, one of the current Stars of the US hip-hop scene, was asked to pay. He pays “only” $ 100,000 penalty for its crypto-advertising, as well as the $ 50,000 that should have been his earnings from advertising. The reason for the sanctions imposed by the authority, however, is less the fact that the two Celebrities have ever stirred the drum for crypto-currencies on their channels in social media. Rather, the SEC punishes that in the advertising for the ICOs was not clear in that the two Stars have received money for these instructions. It is not, therefore, the General criticism of ICOs,

The Supervisory authority warns, however, in view of the variety of black sheep in the industry, and the lack of state regulation continue to face the risks of digital IPOs. The ICO, in advertising, by the way, the Token “Centra”. This Startup had exposed the SEC in the spring of this year as a non-serious and legal actions against those responsible.

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