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There's an important lesson for entrepreneurs in the crypto timeline: You can make a lot of money on a bad idea.
It wasn't even a bad idea (indeed there was no real idea at all). They specifically set out to defraud investors.
I'm absolutely shocked by this turn of events.
Taking investment advice from someone who gets hit in the head for a living was never a sound strategy.

Eagerly awaiting to see if more arrests come down the line for some of the more recent "ICOs"

Taking investment advice from someone who types polemics on HN all day was never a sound strategy.

See, one data point does not necessarily disprove the worth of another. Floyd was promoting a scam in this instance, but that doesn't mean he is completely incapable of uttering the words, "buy an asset that slowly and predictably and sustainably rises faster than inflation."

I can almost guarantee you Floyd Mayweather does not know what an ICO is. Nor does he likely understand what Cryptocurrency is on anything other than a supremely basic level. Mayweather cares about one thing: money. This company probably payed him a metric shit-ton of it to promote their ICO in a tweet, that is all.

Floyd Mayweather can barely read. I''m not exaggerating, it's actually kind of sad. But, on the other hand Floyd Mayweather doesn't have to read. He spends his life training and making more money in one night than many of us probably will in 20 years.

Ease up on the reins there cowboy, I think you took that comment waaaay too seriously.

That said, I've been following Mayweather closely as a boxer for many years. He's a boxing prodigy, but he's also a genuine imbecile. I wouldn't be surprised if actually doesn't grasp the concept of inflation. Really, no exaggeration.

I think there's a special place in Hell for people who offer financial advice to people who get hit in the head for a living.

These sorts of stories seem to happen often. I don't know if there's a group of predatory finance people out there or if athletes don't want to hear what the responsible ones have to say and they end up with the charlatans.

It's a shame he hasn't been charged directly, him and all the other high profile "social influencers" that don't make it clear they're being paid to plug some dog shit and haven't done a single bit of due diligence. $32m fine should just about do that. Pure greed.
> It's a shame he hasn't been charged directly

The SEC is currently only prosecuting the people running the ICOs, prosecutions for the promoters will likely come at a later date.

And this is a guy who is already worth hundreds of millions of dollars.

Yesterday there was a report that John McAfee charges $100K+ for a single tweet.

There is no limit for human greed I suppose.

Should Federer have to to due diligence on Rolex before slapping one on his wrist? How? What would it involve, and what standards would he be held to when pulled up on charges?

This is what the SEC is for - discovering fraud. How is a sportsperson supposed to do due diligence on a security?

I could (and probably would) get behind a law requiring people to acknowledge paid endorsements, but requiring them to investigate just seems untenable.

Intent. Let the SEC do its due diligence as well and see what turns up to determine culpability.
You're admitting that a state institution dedicated to investigate fraud will have to work just to determine if there was actually a problem worth investigating. How on earth could a potential sponsor like the figurative Federed do the same prior to signing an advertisement contract? And should actors shooting ads be subjected to the same demand, or even the typical "9 out of 10 dentists"?
No, I'm admitting that, in the course of an existing investigation attempting to press criminal charges against the scammers, emails may turn up with Mayweather writing "how long does it take me to get paid after you con these idiots? How else can I help you guys pump things up quickly and how quickly can I get paid?". Then, maybe they'll decide to charge him with something and use him as a lesson against future promoters. Probably not. We'll see.

Either way, they may determine he needs to cough up his profits. Take a look at the Madoff aftermath.

The SEC could still pursue charges against Mayweather for his actions in the ICO, [0] which I hope that they do. In fact I hope they are looking at all the celebrity endorsements over the last 18 months, and considering actions against them.[1]

[0] https://www.sec.gov/news/public-statement/statement-potentia...

[1] https://www.nytimes.com/2017/10/27/technology/how-floyd-mayw...

What was his level of involvement in the promotion, barring holding up a debit card and endorsing them?

Did he have knowledge that it was a fraud?