Mayweather, DJ Khaled
Sued Over Alleged Cryptocurrency Scam
10/19/2018 9:32 AM PDT
The coin at the center of the scandal is called Centra Tech — and, according to the class action lawsuit, Floyd and Khaled were influential celebrity endorsers who promoted the virtual currency on social media.
In fact, social media posts from Floyd encouraged people to buy the coin and he said he was so excited about it, “You can call me Floyd ‘Crypto’ Mayweather from now on.”
Khaled called the company and its products a “game changer.”
The problem … the Securities and Exchange Commission says the company behind the coin was operating illegally, misleading investors and claims several of the execs listed on the company website don’t really exist.
Centra Tech raised $32 million in backing during the initial coin offering in 2017 … thanks, in part, to the celeb endorsements … the lawsuit claims.
The founders of the company were arrested back in April and are facing several charges including securities fraud, wire fraud and some conspiracy charges.
In the suit, investors are going after the company founders and the celeb endorsers for fraud — and they’re seeking to get their millions of dollars back plus damages.
One interesting note from the lawsuit — investors say the value of the coin has plummeted over the past year. It was worth roughly $1 per coin in February and after the arrests in April, it’s dropped to less than $0.02 per coin.