Producer DJ Khaled and celebrated boxer Floyd Mayweather have allegedly been sued over their involvement as celebrity endorsers with the Centra Tech 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.
Mayweather and Khaled signed endorsement deals with Centra Tech, which billed itself as a company that sold financial products related to cryptocurrency, 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.
The lawsuit filed against Centra Tech claims that the company raised $32 million from their ICO in 2017, partly due to the company’s celebrity endorsement.
Investors are now looking to reclaim their funds along with damages after the company’s founders Raymond Trapani, Sohrab Sharma, and Robert Farkas were arrested and charged with both wire and securities fraud back in April of 2018. All three were allegedly found guilty of attempting to defraud their investors through an initial coin offering (ICO).