DJ Khaled and Floyd Mayweather Successfully Escape ICO Fraud Lawsuit

P. H. Madore
The two high-profile figures who promoted the ICO evade a lawsuit accusing them of promoting it and soliciting investors. | Source: Reuters/Shutterstock; Edited by CCN

By CCN: A federal court has dismissed a lawsuit against Floyd Mayweather, DJ Khaled, and the proprietors of Centra Tech, an ICO that centered around the launch of a crypto debit card. Mayweather and Khaled were compensated for using their vast social media presence to promote the ICO. The court has decided that this is not enough to make them “successful solicitors.”

Khaled, Mayweather Not “Successful Solicitors” for Centra Tech

The court ruled in favor of a motion to dismiss by the defendants.

In the case of Floyd Mayweather, the court specifically pointed out that there wasn’t much evidence indicating Mayweather in the poor decision making of the plaintiffs. The ruling further points out that at least two of the plaintiffs bought the Centra Tech ICO before Mayweather had even promoted it.

“The Plaintiff’s complaint fails to establish that Mayweather “successfully solicited” the Plaintiffs to purchase CTR Tokens. […] [T]here are no allegations that this was a successful solicitation, that Mayweather had any contact with Plaintiffs, or that Plaintiffs even saw the posts. […] Mayweather has no relationship with the Plaintiffs. The complaint does not allege that Plaintiffs follow Mayweather’s twitter account or that they saw his posts or video with Centra Tech. In fact, two of the Plaintiffs, Fung Poo and Lee, made their purchases before Mayweather posted on Twitter about Centra Tech. “

DJ Khaled’s motion to dismiss passed for “largely the same reasons.”

Mayweather promoted the ICO to millions of followers but has evaded a lawsuit accusing him of soliciting investors. | Source: Shutterstock

The ruling makes clear that the case could have succeeded if the plaintiffs had established that Mayweather and Khaled “created” the market. That is, there’d have been no sale without them. But crucial facts of the case make such claims impossible.

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