The King of the modern boxing, Floyd Mayweather Jr. and the records spinning DJ Khaled, are being sued for their role in a cryptocurrency scam company, Centra Tech. The company was reported to have signed some promotional deals with the two superstars.
Centra Tech Scam
Centra Tech which is said to be into the sales of financial products related to cryptocurrency has been reported to be a scam.
The news of Centra Tech, signing a deal with these two superstars has greatly helped the firm attract so many investments which were estimated to be about $30million. These various investors are now seeking ways through which they can reclaim their lost funds. Since the two superstars played a major in endorsing the company, the victims of the Centra Tech scam have sued them also.
Since the founders of Centra Tech, Trapani, Sohrab Sharma and Robert Farkas, got arrested earlier this year for wire and securities fraud. The operations of the company have been halted. The three founders were also found guilty of attempting to defraud their investors through an initial coin offering (ICO).
Founder to Serve not Less than Five Years in Jail
Through a recent press release, the Department of Justice released a statement, about the situation of the company. The department stated that:
” Centra Tech, Purported to offer cryptocurrency-related financial products, with conspiring to commit, and the commission of, securities and wire fraud in connection with a scheme to induce victims to invest millions of dollars’ worth of digital funds for the purchase of unregistered securities, in the form of digital currency tokens issued by Centra Tech, through material misrepresentations and omissions.”
The department further stated that:
“Sharma, Trapani and Farkas were all arrested based on criminal complaints filed by this office, charging them with the same crimes. Following their arrests, this office and the Federal Bureau of Investigation (FBI) seized 91,000 ether units, consisting of digital funds raised from victims as part of the charged scheme. This seized digital currency is presently worth more than $60 million.”
A report has also made it known that the three co-founders are facing nothing less than five years behind bars if found guilty by the court.