DJ Khaled and Floyd Mayweather have been hit with a lawsuit from individuals who say that the stars were a part of an illegal cryptocurrency scam that screwed investors out of millions of Genuine dollars.
The coin at the focal point of the outrage is called Centra Tech – and, as indicated by the legal lawsuit, Floyd Mayweather and DJ Khaled were influential celebrity endorsers who promoted the virtual cash on social media.
— Floyd Mayweather (@FloydMayweather) September 15, 2017
Actually, social media posts from Floyd urged individuals to purchase the coin and he said he was so energized in regards to it, “You can call me Floyd ‘Crypto’ Mayweather now.”
I just received my titanium centra debit card. The Centra Card & Centra Wallet app is the… https://t.co/iIbQwQCwD1
— DJ KHALED (@djkhaled) September 27, 2017
DJ Khaled called the company a “game changer.”
The issue … the Securities and Exchange Commission says the company behind the coin was working illegally, deceptive investors and cases a few of the executives recorded on the company website don’t generally exist.
Centra Tech raised $32 million in maneuvering amid the initial coin offering in 2017 … much obliged, to some degree, to the celeb supports … the lawsuit claims.
The founders of the company were arrested back in April and are dealing with a few indictments including securities fraud, wire fraud, and some conspiracy charges.
In the suit, investors are pursuing the company founders and the celeb endorsers for fraud – and they’re trying to recover their millions of dollars in addition to harms.
One intriguing note from the lawsuit – investors say the estimation of the coin has dived over the previous year. It was worth generally $1 per coin in February and after the arrests in April, it’s dropped to under $0.02 per coin.