The U.S Securities and Exchange Commission charged boxer Champion Floyd Mayweather with fraudulent activity. The company Creta raised $32 million through a fundraising mechanism known as an Initial Coin Offering or ICO.
Initial Coin Offering is a process in which company issues a new digital coin in exchange for money. The coin is either traded or utilized on a service offered by the company.
Raymond Trapani, Centra’s Co-founder is part of a complaint which charges two other company founders for carrying out fraudulent of ICO.
Chief of SEC Enforcement Division’s Cyber Unit says “We allege that the Centra co-founders went to great lengths to create the false impression that they had developed a viable, cutting-edge technology.”
Further, he adds “Investors should exercise caution about investments in digital assets, especially when they are markets with claims that seem too good to be true.”
Complaint by SEC
Boxer Floyd Mayweather was not named in the complaint posted a picture holding a card of Centra in September. The Singer DJ Khaled is also endorsing the company.
Trapani is been named as “mastermind” of the scheme by SEC Complaint. Centra alleges to market fake business relationship with major credit card companies including Visa and Mastercard. This is published fictional on executive bios and are misrepresenting on the viability of the company’s Products.
Bestowing to SEC, Trapani, and another co-founder, Sohrab “Sam” Sharma purportedly propped up the price of the CTR tokens which are issued by the company.
U.S regulators have been come up with the efforts to shut down fraudulent ICO’s this year. The SEC says in March that it is looking to applicable securities laws to cryptocurrency exchanges and walled. Jay Clayton, SEC head asserts that the organization is devoting a “significant portion of resources” to the ICO market.
Image Source: Floyd Mayweather