DJ Khaled To Pay Over $150K In Fines After Alleged Cryptocurrency Fraud

DJ Khaled has finally settled charges brought against him by the Securities and Exchange Commission (SEC) for his alleged role in a cryptocurrency scandal, TMZ reports. 

The record producer and boxer Floyd Mayweather were accused of going to social media in 2017 to promote Centra Tech Inc. without disclosing that they were paid for the promotion — a violation of federal law. The SEC claimed that Floyd did not disclose three promotional payments from three cryptocurrency issuers that totaled $300,000 and Khaled did not disclose the $50,000 he received for his said promotion. 

Back in April, the SEC filed a lawsuit against Centra Tech, claiming they were operating illegally, misleading investors. The SEC also brought charges against Floyd and Khaled, however, both were able to settle their cases on Thursday (November 29), after agreeing to pay fines. 

Floyd agreed to pay back the $300,000 he received, plus another $300,0000 in fines and another $14,000 in interest. Khaled will also have to pay back the $50,000 he received, plus $100,000 in fines and $2,725 in interest. 

The two will also not be allowed to promote any securities in the next few years. Floyd's ban lasts for three years, while Khaled's will span two years, according to RollingStone.

T.I. is currently gearing up for a similar legal battle. Earlier this month, a group of 25 investors sued the "JEFE" rapper and his business partner, Ryan Felton, for security fraud. The group claims Tip allegedly tricked them into pouring over $1.3 million into "now worthless" cryptocurrency called FLiK Tokens. 

The investors are seeking no less than $5,000,000 in damages.

Photo: Getty Images