DJ Khaled & Floyd Mayweather Dismissed In ICO Fraud Lawsuit: Report

BYAron A.Updated on September 26, 20223.1K Views

DJ Khaled and Floyd Mayweather escape charges in the ICO fraud case.

DJ Khaled is set to drop his new album, Father Of Asahd tomorrow at midnight but he has more to celebrate than just that. The US Court for the Southern District of Florida threw out a case involving Khaled and Floyd Mayweather's connection to a defunct cryptocurrency company called CentraTech as well as its initial coin offerings of CTR tokens. The SEC charged the company with fraud last April and in October, Khaled and Mayweather charged for promoting the product without disclosing they got paid from it. However, the two can breathe easy as the court has dismissed the case against them.

The court decided that Khaled and Mayweather's role in promoting the company on social media wasn't enough to warrant further legal action. “The Plaintiff’s complaint fails to establish that Mayweather [and Khaled] ‘successfully solicited’ the Plaintiffs to purchase CTR Tokens,” court documents state. Khaled and Mayweather both tweeted about the CTR tokens with the boxer telling his social media followers to join him.

Kevork Djansezian/Getty Images

It was determined in court that the tweets were indirect and even more, it's uncertain if the promotion even successfully made their followers purchase CTR coins. The only way they would be found guilty in this case is if it was proven they had a direct relationship with the defendant. However, there wasn't any proof to establish that the pair had such association with them.

Last November, the US Securities and Exchange Commission fined Khaled and Floyd. The "I'm The One" mastermind paid $150K while Mayweather coughed up $600K in penalties.

[Via]

About The Author

Aron A.

Aron A. is a features editor for HotNewHipHop. Beginning his tenure at HotNewHipHop in July 2017, he has comprehensively documented the biggest stories in the culture over the past few years. Throughout his time, Aron’s helped introduce a number of buzzing up-and-coming artists to our audience, identifying regional trends and highlighting hip-hop from across the globe. As a Canadian-based music journalist, he has also made a concerted effort to put spotlights on artists hailing from North of the border as part of Rise & Grind, the weekly interview series that he created and launched in 2021. Aron also broke a number of stories through his extensive interviews with beloved figures in the culture. These include industry vets (Quality Control co-founder Kevin "Coach K" Lee, Wayno Clark), definitive producers (DJ Paul, Hit-Boy, Zaytoven), cultural disruptors (Soulja Boy), lyrical heavyweights (Pusha T, Styles P, Danny Brown), cultural pioneers (Dapper Dan, Big Daddy Kane), and the next generation of stars (Lil Durk, Latto, Fivio Foreign, Denzel Curry). Aron also penned cover stories with the likes of Rick Ross, Central Cee, Moneybagg Yo, Vince Staples, and Bobby Shmurda.