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.

Japan's Financial Regulator to Increase Oversight of Local Crypto Exchanges

Japan’s financial regulator, the Financial Services Agency (FSA), is reportedly planning to closely monitor cryptocurrency transactions due to heightened concerns regarding their use in financing illicit activities.

According to the Nikkei Asian Review, the FSA is “stepping up its countermeasures” in order to prevent money laundering. The countermeasures include conducting more extensive inspections of the operations of local cryptoasset exchanges.

Intergovernmental Body To Monitor FSA’s Progress

As confirmed by local sources, a Japanese intergovernmental body will be inspecting the FSA’s ongoing efforts and overall progress made in preventing or reducing money laundering activities in the $5 trillion economy. Financial crimes involving cryptocurrencies will also be discussed during the upcoming G-20 meeting.

At present, the FSA is inspecting the business operations of local exchanges, in order to ensure that they’re adhering to appropriate know-your-customer (KYC) and anti-money laundering (AML) policies. The Japanese regulatory authority is also looking more closely into the day-to-day operations of traditional financial institutions to ensure they’re complying with the relevant guidelines.

$571 Million In Crypto Allegedly Stolen From Asian Exchanges

In March 2019, the UN Security Council received reports from cybersecurity professionals which revealed that North Korea had allegedly orchestrated various cyberattacks in order to steal large amounts of cryptocurrency.

The security reports revealed that Asian (including Japanese) digital asset exchanges lost as much as $571 million in cryptocurrency due to at least five different large-scale security breaches. Cybersecurity researchers believes the hacks were carried out by malicious actors based in North Korea.

Evading Sanctions By Using Cryptocurrencies

In statements shared with the UN Security Council (in March 2019), the panel of internet security experts noted:

Cyberattacks involving cryptocurrencies provide the Democratic People's Republic of Korea with more ways to evade sanctions given that they are harder to trace, can be laundered many times and are independent from government regulation.

In April 2017, Japan became the world’s first country to propose a new type of registration system for digital asset exchanges. Prior to its introduction, there were no clear set of laws or guidelines that crypto trading platforms were required to follow.

In late January 2018, Japanese crypto exchange Coincheck was hacked and over $500 million worth of NEM (XEM) tokens were stolen. Due to the damaging security breach, Coincheck’s operations were severely affected as it was forced to suspend trading on its platform for several months. Although Coincheck went through an acquisition and various measures were taken to improve its security, the exchange has not managed to fully recover from the incident.