ICO Fraud lawsuit against DJ Khaled And Floyd Mayweather were officially dismissed by the federal court. Both of the celebrities were accused of issuing an ICO that centered on the launch of a crypto debit card and we are about to find out more in the latest cryptocurrency news below.
Khaled and Mayweather were compensated after using their social media presence to promote their ICO but the court decided that is not enough to make them ‘’solicitors.’’ The court ruled in favor of the defendants due to lack of evidence.
In the Mayweather case, the court did not have enough evidence that indicated the boxer was launching a fraudulent ICO. The ruling pointed out that at least two of the plaintiffs bought the Centra Tech ICO before Mayweather started promoting it:
“The Plaintiff’s complaint fails to establish that Mayweather “successfully solicited” the Plaintiffs to purchase CTR Tokens. […] [T]here are no allegations that this was a successful solicitation, that Mayweather had any contact with Plaintiffs, or that Plaintiffs even saw the posts. […] Mayweather has no relationship with the Plaintiffs. The complaint does not allege that Plaintiffs follow Mayweather’s twitter account or that they saw his posts or video with Centra Tech. In fact, two of the Plaintiffs, Fung Poo and Lee, made their purchases before Mayweather posted on Twitter about Centra Tech. “
DJ Khaled’s ICO fraud lawsuit dropped for the same reasons. The ruling makes clear that the case could have succeeded if the plaintiffs basically ‘’created the market.’’ More specifically, the case could have been built of both of them were the ones responsible for the sale. Since no crucial evidence was found to build such a case, the claims were deemed impossible.
Also, as the altcoin news reported, the ruling admits that both Khaled and Mayweather created fake people with fake credentials in order to make their ICO legitimate. Because of the technical nature of the complaints against him, Steven Sykes the CTO of the company had one count against him dismissed. It is still unknown whether the case will proceed. According to the ruling:
“The allegations against Sykes are based on his involvement with the website. The Complaint, however, is devoid of any specificity with regard to the content of the website, when the website was launched, the alleged misstatements on the website, who determined the content on the website, and if the Plaintiffs ever even visited the website. Accordingly, the Count III is dismissed as to Defendant Sykes.”
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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