DJ Khaled and celebrated boxer Floyd Mayweather are reportedly being sued for their involvement in an alleged cryptocurrency scam.
According to TMZ Sports, Khaled and Mayweather are being accused of participating in an illegal cryptocurrency scam that cost investors millions of dollars. Centra Tech — the company at the center of the alleged scam — recruited both celebrities to endorse their virtual currency product online.
Securities and Exchange Commission says Centra Tech was operating illegally and mislead investors. They claim several of the executives named on the company’s website don’t even exist.
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
Court documents say Centra Tech raised $32 million in backing during the initial coin offering in 2017, partly due to the celebrity endorsements.
The founders of the company were arrested in April and face several charges such as securities fraud, wire fraud and conspiracy charges.
The investors are reportedly suing the company founders and celebrities who endorsed it — including Khaled and Mayweather — for fraud. They want millions of dollars back plus damages.
Over the past year, the value of the coin has dipped from $1 per coin in February to $0.02 in April.