By CCN: A federal court has dismissed a lawsuit against Floyd Mayweather, DJ Khaled, and the proprietors of Centra Tech, an ICO that centered around the launch of a crypto debit card. Mayweather and Khaled were compensated for using their vast social media presence to promote the ICO. The court has decided that this is not enough to make them “successful solicitors.” Khaled, Mayweather Not...
Pro boxing champ Floyd Mayweather Jr. and music producer DJ Khaled agreed to pay the Securities and Exchange Commission a combined $767,500 to settle charges of illegally promoting ICOs. These are first cases the SEC has brought violations involving ICO promotion. The SEC noted that using celebrity endorsers was a crucial part of the ICO issuers' promotional strategy. In a November 29 statement...
The US Securities and Exchange Commission (SEC) has charged boxing legend Floyd Mayweather and recording artist DJ Khaled with illegally promoting initial coin offerings (ICOs). The two celebrities, as CCN reported, had been among the most prolific ICO promoters, pumping crypto tokens on social media while sometimes failing to disclose that the posts -- which in several cases promoted illegal...
As warned earlier in the year by legal experts that celebrity ICO endorsers could face court action in future, it has now come to pass as a lawsuit has been filed against two of the more prominent ICO social media influencers of last year. According to celebrity news publication TMZ, a class action lawsuit has been slapped against music producer DJ Khaled and boxing champion Floyd Mayweather. The...
An initial coin offering (ICO) token promoted by boxing legend Floyd Mayweather is a security, a US district court judge has said. Magistrate Judge Andrea Simonton made this determination in a report related to a class action lawsuit against the operators of Centra Tech, a cryptocurrency startup whose $32 million ICO was shut down by the Securities and Exchange Commission (SEC). Investors are...
The founders of a high-grossing initial coin offering (ICO) have been indicted for defrauding investors in the course of operating their cryptocurrency company, Centra Tech. On Monday, the US Attorney’s Office for the Southern District of New York announced that it had filed charges against Sohrab Sharma, Raymond Trapani, and Robert Farkas, who co-founded and operated Centra Tech. Authorities...
The U.S. Securities and Exchange Commission (SEC) has announced charges against a third partner in an investigation of Centra Tech Inc.’s $32 million ICO which was promoted by legendary boxer Floyd Mayweather. The SEC earlier this month filed charges against the Centra Tech alleging that its ICO — which raised $32 million— was a fraudulent securities offering. Unmasking The 'Mastermind' In an...
The US Securities and Exchange Commission (SEC) filed charges against the Centra Tech initial coin offering (ICO) on Monday, alleging that the token sale -- which was promoted by legendary boxer Floyd Mayweather -- was a fraudulent securities offering. SEC Halts ICO, Charges Founders with Fraud The SEC complaint alleges both that the Centra ICO was an unregistered securities offering and that its...