Co-founder behind ICO promoted by Floyd Mayweather and DJ Khaled pleads guilty to fraud scheme

The co-founder of Centra Tech, which in 2017 ran an ICO promoted by boxer Floyd Mayweather Jr. and music producer DJ Khaled, pled guilty today to his involvement in a multi-million dollar ICO fraud scheme.

According to a news release from the U.S. Department of Justice, Robert Farkas pled guilty to conspiring to commit securities and wire fraud related to a digital investment scheme that duped victims to the tune of $25 million. 

Mayweather and Khaled at one point served as public faces of the scheme, calling for their fans to participate in the unregistered sale. In 2018, the duo settled charges from the Securities and Exchange Commission that they failed to disclose payments they received for their promotion of the ICO. 

Mayweather and Khaled were also sued by investors who accused them of violating securities law, but a federal judge dismissed them from the suit in May 2019. 

As for Farkas, he face sentencing on a date to be determined, according to the DOJ. He could face up to ten years in prison.

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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