The official USDC account on X posted a photo of music producer DJ Khaled wearing a Chelsea jersey featuring ‘USDC by Circle’. The image was accompanied by the short caption ‘Another one’ - a catchphrase made famous by Khaled in the entertainment industry. Circle CEO Jeremy Allaire then reposted the message, adding his own welcome: ‘DJ Khaled welcome to team USDC’.
Public reaction was swift and critical. Crypto Twitter users immediately highlighted Khaled’s past troubles with U.S. regulators over crypto promotions. Taylor Monahan, a former executive at MetaMask, led the sharp criticism against Circle’s decision to align its brand with the controversial producer.
Neither party has made an official announcement regarding an ambassador role or financial terms. Khaled’s tie to the project originated on the soccer pitch. Circle is a primary sponsor with its logo on Chelsea Football Club jerseys, and the music producer became involved after Chelsea and agency Roc Nation announced a partnership in May.
The $25 Million Centra Tech Case
Community outrage centered on Khaled’s past role with Centra Tech. The initial coin offering (ICO) raised $25 million from investors based on fraudulent claims of official partnerships with Visa and Mastercard.
Khaled received $50,000 to promote the CTR token on his social media accounts without disclosing that he was paid. The U.S. Securities and Exchange Commission (SEC) penalized the undisclosed promotion, requiring Khaled to pay over $150,000 in disgorgement and fines.
Penalties for Centra Tech’s founders were far more severe. A federal court sentenced Robert Farkas to one year and one day in prison. His co-founder, Sohrab Sharma, received an eight-year prison term and was ordered to forfeit $36 million in assets.
Why Kim Kardashian Got Dragged In
Khaled’s settlement with the SEC - which barred him from receiving compensation for promoting securities - expired on November 29, 2020. Under the letter of the law, he is now legally free to enter commercial partnerships with any crypto company.
Yet for a community that still remembers the collapse of past ICO tokens, legal clearance does little to offset ethical concerns. Backlash across X continued to mount, quickly turning into widespread mockery. Some observers sarcastically suggested Kim Kardashian as the ideal candidate to become the next USDC ambassador - a nod to Kardashian’s own $1.26 million SEC fine for promoting the EthereumMax token.
For crypto users who fell victim to past scams, the sting of losses driven by celebrity promotions does not easily fade, even after legal penalties have been settled.
Via Decrypt.
Also read: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
