Fraud rap for cryptocurrency promoted by DJ Khaled, Mayweather

first_imgNadine Lustre’s phone stolen in Brazil Jiro Manio arrested for stabbing man in Marikina MOST READ Messi to return as Barca hosts Roma in Champions League last 8 In Liverpool, Man United sees the pain and path to recovery Cabuyao City rising above the ashes through volunteerism The charges, filed in New York, also say the pair “claimed that funds raised in the ICO would help build a suite of financial products,” such as debit cards that would allow users to instantly convert hard-to-spend cryptocurrencies into legal tender.In reality, there was no relationship with legitimately-backed debit cards, the complaint alleges.Centra “sold investors on the promise of new digital technologies by using a sophisticated marketing campaign,” an SEC statement said.“The defendants relied heavily on celebrity endorsements and social media to market their scheme,” Steve Peikin, co-director of the SEC’s Division of Enforcement, said in a statement.“Endorsements and glossy marketing materials are no substitute for the SEC’s registration and disclosure requirements as well as diligence by investors.”ADVERTISEMENT Conor McGregor seeks to emerge from controversy in UFC comeback The value of ICOs exploded last year when investors poured $3.6 billion into 228 projects, up from $96 million for 46 ICOs in 2016.The gold-rush fever surrounding ICOs partly stems from the soaring success of bitcoin, and firms issuing ICOs have raised their visibility by enlisting celebrities.Participants bet that the value of their “tokens” will go up and that they will eventually be able to trade them for established cryptocurrencies like bitcoin and Ethereum, which can in turn be exchanged for traditional currencies.Sports Related Videospowered by AdSparcRead Next Carpio hits red carpet treatment for China Coast Guard PLAY LIST 02:14Carpio hits red carpet treatment for China Coast Guard02:56NCRPO pledges to donate P3.5 million to victims of Taal eruption00:56Heavy rain brings some relief in Australia02:37Calm moments allow Taal folks some respite03:23Negosyo sa Tagaytay City, bagsak sa pag-aalboroto ng Bulkang Taal01:13Christian Standhardinger wins PBA Best Player award MINNEAPOLIS, MN – FEBRUARY 04: Boxer Floyd Mayweather Jr. looks on during Super Bowl LII between the New England Patriots and the Philadelphia Eagles at U.S. Bank Stadium on February 4, 2018 in Minneapolis, Minnesota. Patrick Smith/Getty Images/AFPThe US Securities and Exchange Commission on Monday laid charges over a fraudulent cryptocurrency fundraiser that boxer Floyd Mayweather and rapper DJ Khaled touted on social media.Neither celebrity is accused in the scheme which the SEC said raised more than $32 million from thousands of investors.ADVERTISEMENT Recto seeks to establish Taal rehab body to aid community, eruption victims Scarlett Johansson, Sterling K. Brown among SAG Awards presenters The SEC charged Sohrab “Sam” Sharma and Robert Farkas, co-founders of Centra Tech. Inc., with violating the anti-fraud and registration provisions of US securities laws.Initial Coin Offerings (ICOs) have sprung from nowhere to become a hugely popular way for start-ups to raise funds online, offering self-created digital “tokens” or coins to any willing buyer.FEATURED STORIESSPORTSGinebra beats Meralco again to capture PBA Governors’ Cup titleSPORTSAfter winning title, time for LA Tenorio to give back to Batangas folkSPORTSTim Cone, Ginebra set their sights on elusive All-Filipino crownBut regulators around the world have warned of the risks of fraud, the volatility of virtual currencies and the lack of clarity on what a “token” represents.Sharma and Farkas are accused of masterminding a fraudulent ICO in which Centra offered and sold unregistered investments through a “CTR Token.”   Don’t miss out on the latest news and information. Lights inside SMX hall flicker as Duterte rants vs Ayala, Pangilinan anew LATEST STORIES Judy Ann’s 1st project for 2020 is giving her a ‘stomachache’ View commentslast_img

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