Article By: Ashia Skye

Unfortunately, mogul DJ Khaled is currently facing cryptocurrency fraud charges. Allegedly, the dj/producer failed to disclose payments from promoting investments in Initial Coin Offerings.

The SEC  reports that Khaled did not disclose a $50,000 payment from Centra Tech Inc., a coin he publicly praised on Instagram. He also called the coin a “game changer”. Khaled has yet to speak on the allegations. However, he did agree to pay $50,000 disgorgement, a $100,000 penalty and $2,725 in prejudgment interest. Not only will DJ Khaled have to shell out over $150k, but he also is not allowed to promote any securities, digital or the like for the next two years.

Enforcement Division Co-Director Steven Peikin cautioned investors against celebrity endorsements. “Investors should be skeptical of investment advice posted to social media platforms and should not make decisions based on celebrity endorsements. Social media influencers are often paid promoters. Not investment professionals. The securities they’re touting, regardless of whether they are issued using traditional certificates or on the blockchain, could be frauds.”

The SEC’s investigation is still currently in progress.