Dj Khaled, Floyd Mayweather to Go to Court Over Crypto Scam
TMZ reported that investors are taking boxing champ Floyd Mayweather and leading hip-hop figure DJ Khaled to court for a major lawsuit under the claims that the duo took part in a crypto rip-off worth millions of dollars.
The report states that the celebs famously recognized for their significant social media advocacy are facing fire because of their promotion of the Centra ICO throughout the coin's run-up in 2017.
Investors have begun raising hell to get have their funds returned in attempt to recover from the fraudulent endorsement and Centra’s founders.
The suit alleges that Centra’s ROI in 2017, an estimate of $32 million was in part due to the two major celeb's endorsement of the fraud. Centra pulled its capital with a grand pledge to develop its products, which were meant to be supported by big-name card processors, including Visa.
Nevertheless, earlier in the Spring, three co-founders of the organization were accused of deceit after fabricated executive profiles were revealed, in addition to the failure to abide by federal securities law and fake partnership claims alongside MasterCard.
The charges were directly from DoJ and the US SEC.
Naturally, the value of the token took a deep dive sinking lower than a dollar to $0.02 following the arrest of the perpetrators, explained the lawsuit.
The SEC issued statements encouraging consumers to take caution against ICOs that get a gold star from celebrities, and if the aforementioned celebrities do not fully reveal the details and amount they are receiving for backing up an ICO, they might be violating federal law.