Producer DJ Khaled and boxer Floyd Mayweather have reportedly been slapped with a lawsuit after their alleged participation in a cryptocurrency scam that cost investors millions, TMZ reports.
According to the lawsuit, both celebrities actively promoted Centra Tech on social media. Mayweather even went as far as to encourage people to buy the coin which he was so excited about, he said: “You can call me Floyd ‘Crypto’ Mayweather from now on,” while Khaled allegedly called the company and its products a “game changer.”
The Securities and Exchange Commision disagrees, saying the company behind the coin was operating illegally, misleading investors, and made claims about several executives listed on the website that don’t actually exist.
The lawsuit claims that Centra Tech raised $32 million from their ICO in 2017, partly due to the company’s celebrity endorsement.
Now the investors want their money back, plus damages, from the company founders and the celebrity endorsers.
The company’s founders, Raymond Trapani, Sohrab Sharma, and Robert Farkas were arrested in April and are being accused of securities fraud, wire fraud as well as some conspiracy charges. If found guilty, the three could be facing up to 65 years in prison.
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