Boxing royalty Floyd Mayweather and music producer DJ Khaled are allegedly embroiled in a $25 million crypto scam and are supposedly being sued for their involvement.
Floyd Mayweather is used to being intrinsically linked with his ‘money’ moniker, but this ‘money’ matter involving his promotion of the Centra Tech crypto scam is causing the pugilist some grief.
Lawsuit for Mayweather and Khaled?
According to exclusive TMZ report, both Mayweather and the much-celebrated hip-hop beat-maker, DJ Khaled have been allegedly caught up for being celebrity endorsers of the $25 million Centra Tech crypto scam. It is believed by TMZ that Mayweather and Khaled are actually involved in the lawsuit for promoting the digital asset across their social media platforms.
The report also stated that investors in the scam are looking to retrieve their money, alongside seeking damages from not only Centra Tech but also the two celebrities.
At this moment in time, the news is still somewhat suspect. It is still unclear whether the two have been indicted based on new information in regards to the crypto scam, or are part of the class action filled in June this year claiming that Centra Tech was violating SEC regulations while selling their CTR token.
Centra Tech Crypto Scam
The Centra Tech crypto scam was first unearthed earlier this year when a magistrate judge released a report that the tokens being sold by the Centra Tech ICO were securities. Centra Tech’s three co-founders Sohrab Sharma, Raymond Trapani, and Robert Farkas were arrested and detained in April and were later accused of defrauding investors in the alleged ICO scam.
Authorities at the time alleged that the trio was making false claims in regards to their token and about its relationship with credible financial networks. It was also claimed that the ICO was illegal and that the founders lied about partnership deals and supposed collaborations with MasterCard and Visa.
The co-founders are currently facing a combined total of 65 years in prison and will be subject to financial penalties for their involvement in the crypto scam.
Although Mayweather and Khaled are not directly linked in the scam, they both promoted the CTR token across their Instagram accounts in the pre-sale stage of the ICO. Mayweather encouraged investors to “join Centra’s ICO on Sept. 19th” in a screenshot from TechCrunch.
DJ Khaled also promoted the CTR token on an Instagram post that said: “The Central Card & Central Wallet app is the ultimate winner in Cryptocurrency debit cards.”
I just received my titanium centra debit card. The Centra Card & Centra Wallet app is the… https://t.co/iIbQwQCwD1— DJ KHALED (@djkhaled) September 27, 2017
Although TMZ has reported that Khaled and Mayweather are now being sued for their involvement in the crypto scam, neither parties have released a statement on the matter.