As some of you might recall, there was a trend among fraudsters to mislead celebrities into endorsing their cryptocurrency projects.
As some of you might recall, there was a trend among fraudsters to mislead celebrities into endorsing their cryptocurrency projects. For example, DJ Khaled and Floyd Mayweather saw themselves caught in the act – promoting projects that later turned out to be scams.
Instantly, the Court for the Southern District of Florida filed a case of ICO fraud against Khaled and Mayweather. However, the case was recently dismissed due to the fact that their endorsements had a minor role in the scam. That being said, the court has decided to cease its prosecution of Khaled and Mayweather. For the uninitiated, they promoted the now-defunct crypto company CentraTech and its CTR tokens.
Court documents read:
“The Plaintiff’s complaint fails to establish that Mayweather [and Khaled] ‘successfully solicited’ the Plaintiffs to purchase CTR Tokens,”
Even though both Mayweather and DJ Khaled posted tweets where they mention CTR tokens, they did not explicitly solicit the tokens for sale.
“The allegations against Mayweather establish that he posted two tweets from his Twitter account related to CTR Tokens. (ECF No. 97 at 64-65.) One of the posts urges his followers to “get yours before they sell out, I got mine.” (Id. at ¶ 210.) This is the closest thing to “solicitation” in the complaint. However, there are no allegations that this was a successful solicitation“, the report reads.
The Court assures that these tweets barely made an impact, plus it is hard to estimate their exact influence on the market. Additionally, the Court failed to prove any existing relationship between the plaintiffs and the defendants. Nevertheless, the authorities penalized both Mayweather and Khaled. The boxer paid $600,000 fee while the DJ kissed some $150,000 goodbye.
However, American comedian Kevin Hart had quite the opposite fate. The world’s second highest paid comedian is having a hard time since the authorities are closely reviewing his role in the promotion of the infamous FliK ICO, issued by rapper TI.
Last week, Hart and TI were convicted of fraud. Investors claim they have lost over $1.3 million in purchasing FliK worthless tokens.