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.

tZERO Opened Its Doors to Non-Accredited Investors, but Their Options Are Still Limited

Samuel Haig

Last week, tZERO announced that its securities tokens (TZROP) are now available to be traded to non-accredited investors, as per Rule 144 of the Securities Act of 1933.

Despite the launch, the platform offers limited functionality, Overstock's OSTKO security token and TZROP comprising the only markets that are currently available for non-accredited investors to trade. Traders are only able to place limit and market orders to purhcase security tokens using fiat currency, with tZERO's markets open for trade during weekdays between 9:30am and 4:00pm EDT.

Signing up to trade on tZERO requires submitting identifying documentation to the platform, with verification taking several days for the company to complete. As the platform develops and evolves, however, more functionality is to be expected.

TZROP Tokens to Generate Divident for Investors

TZROP were first issued via a private placement during August 2018, and have been tradable among accredited investors since January of this year. The tokens are now exclusively tradable on the PRO Securities alternative trading system (ATS) to investors who hold an account with Dinosaur Financial - a broker-dealer headquartered in New York.

According to a press release, the TZROP token offers investors “direct exposure to tZERO’s revenue growth through its quarterly dividend model,” with tZERO pledging to distribute 10% of its adjusted gross revenue to holders of its security token . Investors can reportedly choose to receive dividends in the form of BTC, ETH, TZROP, or U.S. dollars.

However, the release notes that the distribution of dividends is subject to approval from tZERO’s board of directors, and Delaware law.

Peer-to-Peer Trading of TZROP Tokens Prohibited

TZERO emphasized that peer-to-peer transfers of TZROP have not been authorized, asserting that TZROP holders must exclusively resell tokens “on the PRO Securities' [...] ATS only through a brokerage account established with Dino, a subscriber to the ATS, with clearing and custody provided by Electronic Transaction Clearing, a registered broker-dealer, and Computershare, as transfer agent.”

To comply with the company’s regulatory obligations, tZERO also reserves the right to prohibit tZERO security token holders from moving TZROP from Dinosaur Financial brokerage accounts to personal wallets.

The chief executive officer of tZERO, Saum Noursalehi, stated:

“Following the one-year anniversary of the close of our security token offering, non-accredited investors now have the ability to purchase and trade in our security tokens. Today marks another milestone as we further democratize access to all investors, regardless of net worth, can invest in the business opportunity of a blockchain-based capital market.”

TZERO Receives Patent for ‘TOME’ Technology

On Aug. 6, 2019, tZERO was awarded a patent for a process for recording trading data on a public blockchain, dubbed the “Time Ordered Merkle Epoch (TOME) methodology.”

According to the company’s announcement:

TOME is a base-layer technology that uses digital signatures to record and verify time-series data such as trades, executions and settlements. This technology enables low-latency systems, including traditional matching engines or private blockchain ledgers, to be anchored into immutable public blockchain ledgers.

TZERO plans to incorporate TOME into its product suite, in addition to licensing the technology to other firms.