DJ Khaled joins USDC as Circle faces backlash over past controversies

Circle, the issuer of the $74 billion stablecoin USDC, has reportedly enlisted music producer DJ Khaled as an ambassador. The company shared a promotional photo featuring Khaled wearing the new USDC-sponsored Chelsea FC shirt, with CEO Jeremy Allaire welcoming him to “team USDC.” However, Khaled’s own social media feed does not mention any partnership with USDC.

This move is notable given Khaled’s history with the SEC. In 2018, he was charged for promoting the fraudulent Centra Tech ICO without disclosing payments he received. The SEC found that Khaled was paid $50,000 by Centra Tech to promote the investment to his followers, advising them to “get yours before they sell out, I got mine…” Khaled settled with the SEC, paying approximately $153,000 and agreeing not to promote securities for two years.

The partnership has drawn criticism, particularly from on-chain investigator ZachXBT, who questioned Circle’s decision to work with someone previously involved in a blatant ICO scam. Centra Tech’s co-founders received prison sentences, and the case was even documented in a Netflix series. Circle has faced other controversies, including criticism for not freezing stolen USDC during major crypto hacks, despite its built-in freeze function.

Circle’s recent launch of its corporate-focused blockchain, Arc, was also marred by a promotional misstep involving a memecoin based on Allaire’s dog, Duke. The DUKE token briefly peaked at a $2 million market cap but has since dropped 96%. These incidents add to concerns about Circle’s judgment and compliance practices.