An initial coin offer (ICO) promoted by boxing champion Floyd Mayweather, Jr., is at the center of a recently filed class action lawsuit.
Dated December 13, the suit names Sohrab Sharma, Raymond Trapani, Robert Farkas and William Hagner, as well as Centra Tech, Inc., as defendants, accusing them of violating the US securities law. UU Through a symbolic sale that finally raised $ 30 million for the development of a debit card focused on cryptocurrencies.
The presentation comes more than a month after two of the firm’s founders left the company. According to a October 31 blog post from Centra, both Sharm and Trapani left the project after the sale was finalized, as well as a profile of them and the ICO by The New York Times.
In the lawsuit, the plaintiff’s attorneys argued that the sale of Centra constituted an unregistered offer and sale of securities.
“… in relation to Centra Initial Coin Offering (the” ICO of Centra “), the Defendants collected more than $ 30 million in digital cryptocurrencies by offering and selling unregistered securities in direct violation of the Securities Act.”
The lawsuit also accused the defendants of misleading investors about the nature of their relationship with Visa and MasterCard card networks, as well as listing false members of the team on their website.
In a statement posted on his blog, the Centra team challenged the lawsuit filed by “a supposed buyer of Centra Tokens.”
“This lawsuit, which for the most part seems to repeat unfounded claims with respect to Centra Tech, alleges that Centra Tech’s initial offer of Centra Tokens was an unregistered sale of securities.” The plaintiff’s lawsuit attempts to imitate the Commission’s claims and accusations. Bolsa y Valores has lodged itself against other cryptocurrency providers, “the startup wrote, adding:
“Centra Tech disputes the allegations in the complaint.”
The ICO Center was notably promoted by Mayweather and by music producer DJ Khaled before its completion. Although the timing is currently unclear, Mayweather’s original publications on Instagram and Facebook that promoted the sale appear to have been removed, and a publication on Instagram by DJ Khaled is also unavailable from the time of publication.
Neither Mayweather nor Khaled were named in the lawsuit.
Jacob Zowie, the plaintiff, is represented by Komlossy Law and Levi & Korinsky LLP in the lawsuit. A representative of Mayweather did not immediately respond to a request for comment.