Prominent boxer, Floyd Mayweather and Artist, Dj Khaled will not come under further sanctions after a Federal court ruled that the men did not engage in the sale of unregistered securities as alleged by the plaintiff, Rensel.
A Yahoo report regarding the dismissal of both celebrities cites the court notice as ruling that efforts they made to promote tokens issued by allegedly fake crypto project, Centra Tech, is the closest thing to “solicitation.”
Making exceptions that the promotion, however, could count as one, the dismissal notion said that the plaintiff did not make allegations that the updates by the celebrities were a “successful solicitation” or that they had any contact with Plaintiffs, or that Plaintiffs even saw the posts.”
Additionally, the notion argued that the market that Floyd and Dj Khaled promoted the token to were already in existence before the social media posts, and not newly formed as the Plaintiff suggested. The court also granted dismissal to Central Tech’s CTO, Sykes, and the firms Director PR under the grounds that there is no evidence that the plaintiff relied on their content or statements to purchase the tokens.
Meanwhile, although the court dismissed Mayweather, Dj Khaled, and other officials not directly involved with the token sale, it spelled a criminal prosecution for fraud against the three principal founders of the Centra Tech project which raised $32 million between mid-2017 and early 2018.
Stmarket.co also reported in November that the U.S Securities and Exchanges Commission (SEC) fined Mayweather and DJ Khaled a combined $767,501 for promoting Centra Tech’s token on their social media handles without registering with the regulators.