Floyd "Crypto" Mayweather and Dj Khaled fined by the SEC

[Mikehoncho]

https://edition.cnn.com/2018/11/29/tech/dj-khaled-floyd-mayweather-coin-crypto-sec/index.html

The SEC has fined Championship boxer Floyd "Crypto"(Self-Titled) Mayweather and Artist Dj Khaled for promoting an ICO without revealing that they were paid endorsers. 

The SEC states coins sold in an ICO can be constituted as securities and, as such, are subject to federal law. Because the two men didn't disclose this information, they were made to pay back the money they were paid as well as interest on top, because they're endorsements appeared unbiased. The unsuspecting investor could in turn, buy in to the ICO only based on that fact, even though the offerings weren't what the two entertainers described.

Now my question is, if they can fine you under those laws, why can't we get a crypto exchange?

[wry]

I just saw that headline and had to smile.  I remember when their two initial tweets went out, I think it was for a Centra debit card or something.  I have a Bitpay card and went and checked it out and it did not seem like too good of a deal to me.  I'll have to read the article more closely, interesting that they thought investors would buy into the ICO from the promotion of a prepaid debit card, but IIRC that was the only way to get the card.

I don't understand your question, we have lots of crypto exchanges.  If you mean why can't we get a Bitcoin backed exchange traded fund, the reason is the SEC believes Bitcoin markets are subject to manipulation and there are issues with safely holding crypto coins, custodianship in SEC parlance.

[Babagucci]

Not surprised with this news..seen this coming a mile away. The worst part is Mayweather was encouraging is followers to buy into the scam. He clearly doesn't care at all about his fans. With him, it's all about the money and he already has so much of it. So dissapointing.

[Mikehoncho]

27 minutes ago, wry said:

I just saw that headline and had to smile.  I remember when their two initial tweets went out, I think it was for a Centra debit card or something.  I have a Bitpay card and went and checked it out and it did not seem like too good of a deal to me.  I'll have to read the article more closely, interesting that they thought investors would buy into the ICO from the promotion of a prepaid debit card, but IIRC that was the only way to get the card.

I don't understand your question, we have lots of crypto exchanges.  If you mean why can't we get a Bitcoin backed exchange traded fund, the reason is the SEC believes Bitcoin markets are subject to manipulation and there are issues with safely holding crypto coins, custodianship in SEC parlance.

That is what I meant. Thanks for clarifying and answering. I saw the part about manipulation in your last news post, and I am inclined to agree with that. 

Why does it seem like a gray area to me with the way they fine?

[Etude]

I think there is another boxer, Manny Pacquiao is just about to release his own token/cryptocurrency too. Well they are well using the combination of their fame and the current trending cryptocurrency hype.

[wry]

5 minutes ago, Etude said:

I think there is another boxer, Manny Pacquiao is just about to release his own token/cryptocurrency too. Well they are well using the combination of their fame and the current trending cryptocurrency hype.

I expect he'll do it in the Philippines where he is basically a god and will avoid the SEC trouble that these two bozos got into.

It wasn't the coin so much as the ads that endorsed the ICO without disclosure.