Case No. 100: DJ Khaled

The full story

On 29 November 2018 the Securities and Exchange Commission settled charges against DJ Khaled (Khaled Khaled) for failing to disclose a payment he received for promoting an initial coin offering — the SEC's first cases charging touting violations involving ICOs, announced the same day as a parallel settlement with Floyd Mayweather Jr. Khaled had described Centra Tech's CTR token offering as a 'Game changer' on his social media accounts without disclosing the $50,000 Centra Tech paid him. He was not charged with participating in the offering's underlying fraud. Without admitting or denying the findings, he agreed to pay $50,000 in disgorgement, a $100,000 penalty and $2,725 in prejudgment interest, and not to promote any securities for two years — a restriction that expired in 2020.

The clues we handed out

— The other person charged the same day was a retired welterweight with an undefeated record.

— He was not accused of any part in the company's fraud. The charge was failing to disclose that he had been paid to promote it.

— He settled without admitting or denying the findings: $50,000 in disgorgement, a $100,000 penalty, $2,725 in interest, and a two-year ban on promoting securities.

— He is a Miami radio DJ turned producer, shouts his own name on his own records, and is responsible for 'another one' and 'bless up'.

— Initials: D.K.

How this case played

ALLEGEDLY* edition No. 100. Three strikes to name DJ Khaled, with a free clue unlocked after every miss.

Where this comes from

Every case on this site is drawn from the public record. These are the records for this one.

sec.gov

More closed cases from the Music desk

Every closed case from the Music desk →