Floyd Mayweather and DJ Khaled are being sued for $32 million on account of an alleged cryptocurrency scam. The cryptocurrency scam resulted in the loss of millions of dollars for investors. The scandal involves a coin called Centra Tech.
DJ Khaled and Floyd Mayweather Supported Centra Tech
Floyd Mayweather and DJ Khaled acted as influencers, using their substantial social followings to endorse Centra Tech.
Both Mayweather and Khaled encouraged people to invest in Centra Tech on social media. Both stars posted photos of themselves with Centra debt cards and raving about the cryptocurrency.
In fact, DJ Khaled referred to Centra Tech as a “game changer.” Mayweather told his following You can call me Floyd ‘Crypto’ Mayweather from now on.” For influential public figures with large followings, these posts were sure to garner attention and prompt action from their supporters.
— Floyd Mayweather (@FloydMayweather) September 15, 2017
The Centra Tech Scandal
Though it is not uncommon to see influencers promoting products and businesses which they are in support of or affiliated with, this time it’s different.
The SEC (Securities and Exchange Commission) has announced that the company behind Centra Tech was operating illegally. In fact, many of the executives named on the website don’t even exist. After raising $32 million in their ICO, where has all this money gone?
In April, the founders of Centra Tech were arrested. They face multiple charges of fraud. The charges include securities fraud, wire fraud, and conspiracy charges. The company’s ICO was likely so successful because of celebrity endorsements such as those from Floyd Mayweather and DJ Khaled. As such, investors are going after both the company and it’s endorsers to get back their lost money.
Though Floyd Mayweather and DJ Khaled may not have known that Centra Tech was a complete scam, they are still being held accountable for encouraging their followings to buy. As celebrities and people of influence, the two have a responsibility to promote lawful products and businesses. And cryptocurrency investors are tired of hearing about scams like these.
This isn’t the only cryptocurrency scam arrest in recent times. In fact, authorities also apprehended the mastermind behind the BitConnect scandal.