World Famous Record producer DJ Khaled and Boxing superstar Floyd Mayweather have been hit with a lawsuit for promoting the Centra ICO which turns out to be a scam.

Right in the midst of the ICO boom last year, the scammers from Centra Tech used DJ Khaled and Floyd Mayweather to promote their fraudulent ICO tokens(CTR) to Millions of followers.

TMZ Reports that a class action lawsuit has been filed against the company in December last year. Khaled and Floyd have been included for endorsing the scam on social media.

Khaled in an Instagram post called the project “Game Changer” and Floyd even renamed himself “Floyd Crypto Mayweather”. Floyd almost has 8 Million followers on Twitter and 21.8 Million Instagram followers whereas DJ Khaled has around 13 Million Instagram followers and over 4.2 Million Twitter followers.

The SEC (Securities and Exchange Commission) has said that Centra Tech had carried out a fraudulent ICO where over $30 Million worth of unregistered securities were sold,

Floyd Mayweather Tweeted:

Spending bitcoins ethereum and other types of cryptocurrency in Beverly Hill https://t.co/q9VZ3MzpK8 pic.twitter.com/BYyOFUnm8W — Floyd Mayweather (@FloydMayweather) September 15, 2017

Dj Khaled Tweeted:

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

Centra Tech had claimed that users can use its Centra Card to use Crypto to transact via Visa and Master Card which turned out to be fake.

The founders of the company were arrested back in April this year after which the coin dropped from $1 in February to $0.02 in April.

Blockmanity’s Take

The SEC has not yet come out with clear regulations for ICO’s and is taking a passive approach to avoid hindering innovation. It has only cracked down on outright frauds and scams until now.

The SEC however revently launched a separate division to help Fintech Startups including ICO’ s to navigate the legal boundaries and implications of their products.

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.

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