Circle, the issuer of the USDC stablecoin, set off a wave of backlash on Crypto Twitter after welcoming DJ Khaled to "team USDC" in a playful post on X on Monday. The rapper's checkered history with crypto promotions was quickly dredged up in the replies—but the episode is probably not what it seems.

Here's what happened, and what appears to have caused the drama.

The Post That Started It

USDC's official X account posted a photo of DJ Khaled wearing a Chelsea jersey with "USDC by Circle" across the chest, captioned "Another one"—a nod to the artist's signature catchphrase. The photo doubled as a showcase of Circle's Chelsea FC partnership. About four hours later, Circle CEO Jeremy Allaire shared the post with a note addressed to the rapper.

@djkhaled welcome to team @USDC — Jeremy Allaire (@jerallaire) October 5, 2026

Nothing in either post announces a sponsorship, an ambassador role, or any money. It reads more like a cheeky nod. Circle is Chelsea's official front-of-shirt sponsor, and Khaled turns up at the club through a separate door: Chelsea's Roc Nation announcement in May involved DJ Khaled as a promotional stunt.

But direct sponsorship or not, Crypto Twitter wasn't having it, given DJ Khaled's history in crypto.

'Please Don't Work With Scammers Like This'

"Please don't work with scammers like this," Joseph Schiarizzi posted on X. "You really want people who have paid hundreds of thousands of dollars in fines to the SEC for illegally not disclosing payments they received for promoting ICOs representing your brand?"

Schiarizzi was referring to the scandal involving the fraudulent Centra ICO. The founders behind Centra went to jail back in 2020. DJ Khaled, among many other celebrities, promoted the token—and paid over $150,000 in fines to the SEC for not disclosing that it was a paid deal.

So, you could be forgiven for thinking DJ Khaled was being paid to promote USDC, and maybe not disclosing it again, and for publicly chastising Circle—a billion-dollar, publicly listed company—for associating with the rapper. But that doesn't appear to be what's going on. Still, the reaction from Crypto Twitter was swift and unforgiving. After all, the internet never forgets.

Pseudonymous crypto sleuth Wazz Crypto went sarcastic, suggesting Circle sponsor Kim Kardashian next, because she's an "outspoken advocate" of stablecoins that "lines up perfectly" with the brand.

I think you should sponsor Kim Kardashian she has been an outspoken advocate for the use of stablecoins for cross border payments, lines up perfectly with the brand message you're trying to pass — Wazz (@WazzCrypto) October 6, 2026

For those who don't get the joke: the SEC ordered Kardashian to pay $1.26 million in penalties, disgorgement and interest in 2022 for promoting the EthereumMax token on Instagram without disclosing $250,000 payment.

Taylor Monahan, formerly of MetaMask, was more pointed: "Circle really hired the guy who was charged with promoting one of the only ICO scams that was so stupid, so blatantly fraudulent, so criminal that it was written up in NYTimes and then promptly prosecuted by DOJ and SEC?" she posted on X.

Circle really hired the guy who was charged with promoting one of the only ICO scams that was so stupid, so blatantly fraudulent, so criminal that it was written up in NYTimes and then promptly prosecuted by DOJ and SEC??????? — Tay 💖 (@tayvano_) October 6, 2026

For the record, and to avoid any possible confusion: the SEC and DOJ never charged Khaled with fraud. The case against the rapper was about an undisclosed payment.

The Centra Saga Behind the Fury

For anyone wondering why Khaled's name triggers such a reaction, the Centra saga offers the answer.

In September 2017, Khaled had 12.4 million Instagram followers when he posted a photo of himself with a Centra Tech debit card, per the SEC's order, calling it "the ultimate winner in Cryptocurrency debit cards" and telling followers: "Get your CTR tokens now!"

CTR was the token from Centra's ICO—an initial coin offering, a fundraiser where a startup sells its own digital tokens to the public, like a stock sale without the stock. Centra paid Khaled $50,000 for the post, per the SEC, and he didn't tell his followers. The law says that if someone pays you to promote an investment, you have to say so—otherwise an advertisement can pass for an honest tip.

The product itself was fiction. Prosecutors said the Visa and Mastercard partnerships behind Centra's crypto card were fake, and so was its CEO—a "Michael Edwards" with a Harvard MBA who didn't exist.

Centra raised more than $25 million in the scheme. Co-founder Robert Farkas pleaded guilty and was sentenced to one year and one day in prison; Sohrab Sharma received eight years and was ordered to forfeit $36 million, per the Justice Department. Netflix later covered the saga in Bitconned, a documentary about the Centra scam.

Khaled settled with the SEC and paid the fine. His two-year agreement not to take payment for promoting securities expired on November 29, 2020—so he's free to strike deals with any crypto company he wants. And, no doubt, Crypto Twitter will be right there to call it out.