This happens when influencer does not publicly state that they pay to promote the virtual currency.
The issue is always very sensitive when it comes to covertness and how to fund your initial offers. For them the authorities fell with all their weight Floyd Mayweer Jr. and DJ Khaled.
The boxer and the music figure were charged by US Securities and Exchange Commission (SEC). Both promoted investments in initial offers in encryption without revealing that they charged them as influential.
In other words, they would have done an activity that the SEC might consider as false. Because they have promoted a service using the image; without informing its followers that it is a commercial advertisement in essence. What violates the regulations of federal securities.
Therefore, the institution imposed a severe punishment for both. Where Floyd Mayweer Jr. will pay a penalty USD $ 300,000. In addition, it will give the SEC USD $ 300,000 which it received as a payment for promotion.
For his part, DJ Khaled will pay a fine Dollar 100 thousand dollars and will make a fee to USD 50 thousand dollars which he received at the beginning.
In addition, both will pay a few extra thousands of interest. At the same time they agreed to never promote any values in the coming years. Mayweather Jr. for three years and Khaled two.
But this could only be the beginning of an elaborated case. Promotions were made to strengthen Center Tech.
This company was charged in May 2018 with federal charges of fraud.