TMZ Claims Floyd Mayweather and DJ Khaled Embroiled in $25 Million Crypto Scam Lawsuit

Alan Wass

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.”

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.

Top Cryptocurrency Coin Mixer Seized; Grayscale Investments 'Big News' Today; More Records for CME's Bitcoin Futures

Major crypto headlines from the past 24 hours: European authorities enforce a world-first seizure of a leading cryptocurrency coin mixer; New York-headquartered Grayscale Investment set to drop "big news" today; and the all-time highs continue for CME Group's bitcoin futures contracts.

The cryptocurrency market has endured some significant selling over the past day. At the time of writing, bitcoin (BTC) and ether (ETH) are trading at $7,588.2 and $234.5; a 4.3% and 8.6% decline over the past 24 hours, respectively. As for the MVIS CryptoCompare Digital Assets 10 Index, it is currently tracking at 3,594.3 (-2.2%).

‘First Law Enforcement Action of its Kind’ Sees Top Crypto Coin Mixer Shutdown

The Dutch Financial Criminal Investigative Service (FIOD) – with the assistance of Europol and Luxembourg authorities – announced the seizure and closure of one of the three largest cryptocurrency mixer services in the world, Bestmixer.io.

This marked the “first law enforcement action of its kind against” a cryptocurrency mixer service, according to a press release from Europol. “A cryptocurrency tumbler or cryptocurrency mixing service is a service offered to mix potentially identifiable or ‘tainted’ cryptocurrency funds with others, so as to obscure the trail back to the fund’s original source,” the statement explained.

Despite the apparent victory for law enforcement, “authorities will come to regret the chain reaction that they are starting here,” according to Cornell associate professor of computer science, Emin Gün Sirer. Explaining his rational, Sirer tweeted “this kind of shutdown creates selective pressure for tumblers that cannot be shutdown. And we know, from the research world, that it’s possible to build much better ones.”

CEO of Cryptoasset Investment Giant Teases ‘Big News’ Today

Grayscale Investments – one of the world’s leading cryptoasset management firms – will be dropping some “big news” at 13:00 (UTC), its founder and chief executive Barry Silbert teased on Twitter.

Grayscale - a Digital Currency Group subsidiary - has been noticeably active on the publicity front in recent times. On May 1, it launched the largest mass media campaign the industry has ever seen and, in the time since, Silbert has been doing the rounds on the media circuit, appearing for interviews on the likes of Bloomberg, FOX Business, and Yahoo Finance.

Records Continue for CME Group’s Bitcoin Futures

CME Group – a world-leading derivatives marketplaces that also offers bitcoin futures contracts – revealed “May is shaping up to be the strongest month ever for CME Bitcoin Futures” in a client email sent on Tuesday.

According to the Chicago-based CME Group, they facilitated the trading of a staggering 33,677 bitcoin futures contracts on May 13; a new daily record. In U.S. dollar terms, this roughly equates to $1.3 billion. The firm also told clients the number of accounts trading its bitcoin futures contracts has risen to over 2,500 – also a new record high.