Home / Bitcoin News / For Celebs, “The ICO’s Makings is a Dangerous Duo”

For Celebs, “The ICO’s Makings is a Dangerous Duo”

Some Hollywood big names have proceeded to make progress in their crypto-related endeavors, while others have been entangled in the following chaos of fizzled and fraudulent projects.

In the same way as other distinctive businesses, Hollywood’s contribution with cryptocurrencies and Initial Coin Offerings (ICO) has turned into a reality and various big names have hoped to gain by the flood in premium and potential cash to be made.

Two major names in media outlets succumbed to the aftermath related with a deceitful ICO of cryptocurrency related administrations startup Centra Tech.

In 2018, the three prime supporters of the project were prosecuted and charged with securities and wire extortion by the United States Securities and Exchange Commission (SEC). Centra Tech had raised $32 million amid its ICO.

Centra Card was promoted as a platinum card apparently upheld by Visa and Mastercard, which enabled clients to change over crypto into fiat monetary standards. Examinations uncovered no real association existed.

American music producer DJ Khaled had also endorsed the undertaking via web-based networking media, touting the Centra platinum card on Instagram. By the by, the post has since been erased from his web based life profiles.

A week ago, the two big names needed to bite the bullet for their contribution with Centra Tech. The SEC formally charged both Mayweather and Khaled for unlawfully promoting the false ICO.

Before any of this became exposed, the organizers of the task figured out how to get the sponsorship of none other than boxing superstar Floyd ‘Cash’ Mayweather. The boxer had posted a photo on Twitter with a Centra charge card close by in September a year ago.

Mayweather wasn’t the main prominent big name to be corrupted by relationship to the deceitful task.

Khaled is set to pay $50,000 in disgorgement, $100,000 as a penalty, and $2,725 in prejudgement interest.

Seagal’s involvement with the ICO didn’t go unnoticed by the SEC, which issued a statement directed at celebrities that warned of possible legal ramifications should they not be abiding by securities regulations:

“Celebrities and others are using social media networks to encourage the public to purchase stocks and other investments. These endorsements may be unlawful if they do not disclose the nature, source, and amount of any compensation paid, directly or indirectly, by the company in exchange for the endorsement.”

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