Key facts
- Circle welcomed DJ Khaled to "team USDC" in a post on X.
- DJ Khaled previously paid $150,000 in fines to the SEC for failing to disclose paid promotions of the Centra ICO.
- The Centra ICO founders were prosecuted by the DOJ and SEC, with co-founders receiving prison sentences.
- Circle is Chelsea FC's front-of-shirt sponsor, and DJ Khaled is associated with the club through a separate Roc Nation deal.
Circle, the issuer of the USDC stablecoin, faced backlash on X (formerly Twitter) after posting a photo of rapper DJ Khaled wearing a Chelsea jersey with "USDC by Circle" branding, captioned "Another one." Circle CEO Jeremy Allaire later shared the post, welcoming Khaled to "team USDC."
However, the move quickly drew criticism from users on Crypto Twitter, who pointed to DJ Khaled's past involvement in promoting initial coin offerings (ICOs) without disclosing payments. Specifically, users recalled his promotion of the Centra Tech (CTR) token in 2017, for which he paid a $150,000 fine to the U.S. Securities and Exchange Commission (SEC) for failing to disclose the $50,000 payment he received. The Centra ICO was later revealed to be a fraudulent scheme, with its founders prosecuted by the Department of Justice (DOJ) and SEC.
While neither Circle's nor DJ Khaled's posts announced a formal sponsorship or ambassador role, the association was enough to provoke strong reactions. Critics, including Joseph Schiarizzi and Taylor Monahan, questioned Circle's decision to align with an individual previously fined by the SEC for undisclosed promotions. Some users, like pseudonymous crypto sleuth Wazz Crypto, sarcastically suggested Circle sponsor Kim Kardashian, who also faced SEC penalties for an undisclosed promotion.
Circle is the official front-of-shirt sponsor for Chelsea FC, and DJ Khaled's appearance in the club's promotional material stems from a separate deal with Roc Nation announced in May. Despite the apparent lack of a direct financial sponsorship between Circle and DJ Khaled for this specific post, the historical context of his past crypto promotions led to significant criticism on social media.