Floyd Mayweather and DJ Khaled were accused by people who claim that the stars were involved in illegal encryption fraud that cheated investors millions of dollars. Floyd and Khaled were prominent supporters of celebrities who promoted Centra Tech's virtual currency to the social media.
Social media posts from Floyd encouraged people to buy the coin and he said he was so excited about it, he wrote;
“You can call me Floyd ‘Crypto’ Mayweather from now on.”Khaled on his on part also called the company and its products a “game changer.”
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.
The lawsuit claims, Centra Tech raised $32 million in backing during the initial coin offering in 2017 thanks, in part, to the celeb endorsements.
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.FOLLOW Instagram - kemikingblog Facebook - jaiyeorie Weddings - jaiyeorieweddings Advertise/ send gist to us - jaiyenews@gmail.com ... spill TEA Easy on Shade #jaiyeorie
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