Against the ICO project Centra a collective lawsuit of depositors was filed. The ICO is known to by promoted by famous boxer Floyd Mayweather and producer DJ Khaled. The project is accused of violating the US Securities Act, CoinDesk reports.
Defendants of the suit, which was filed on December 13, are Centra Tech, as well as Sohrab Sharma, Raymond Trapani, Robert Farkas and William Hagner. During the tokensale, they managed to raise $ 30 million to issue a crypto-currency debit card.
As the newspaper notes, the claim was filed a month after the project was abandoned by its two founders. In a post published on the Centra Tech blog on October 31, it says that Sohrab Sharma and Raymond Trapani left the project after the end of the tokensale.
...in connection with Centra Initial Coin Offering (the "Centra ICO"), Defendants raised over $30 million in digital cryptocurrencies by offering and selling unregistered securities in direct violation of the Securities Act.
Levi & Korsinsky Lawsuit
In addition, the organizers of Centra ICO are charged with misleading investors about the company's relationship with the payment services Visa and Mastercard, as well as in posting false information about its members on its website.
ICO Centra was actively promoted by boxer Floyd Mayweather and music producer DJ Khaled, but later they removed their messages on social networks. In this case, neither Mayweather nor DJ Khaled in the suit appear.
DJ Khaled Centra Promotion
Floyd Mayweather Centra Promotion
In its last statement, Centra company denies all accusations in its address.
This lawsuit, which for the most part, appears to repeat unfounded claims regarding Centra Tech, alleges that Centra Tech’s initial coin offering of Centra Tokens was an unregistered sale of securities. The plaintiff’s complaint attempts to mimic claims and allegations the Securities and Exchange Commission has lodged against other cryptocurrency offerors. Centra Tech disputes the allegations in the complaint.
Centra ICO Statement
According to Coindesk team, a representative for Mayweather did not immediately respond to a request for comment.