Boxer Floyd Mayweather Jr. and entertainment mogul DJ Khaled reportedly are being sued for their roles in an alleged illegal cryptocurrency scam.
According to TMZ, Mayweather and Khaled signed endorsement deals with Centra Tech, which billed itself as a company that sold financial products related to cryptocurrency.
Investors who sunk $32 million into Centra Tech are now seeking to reclaim their money along with damages after the company's founders were arrested and charged with wire fraud and securities fraud in April.
According to TechCrunch.com's John Biggs, Centra Tech founders Raymond Trapani, Sohrab Sharma and Robert Farkas "were found guilty of trying to defraud investors with their ICO (initial coin offering)."
In a press release, the U.S. District Attorney's Office in the Southern District of New York said the three founders "purported to offer cryptocurrency-related financial products, with conspiring to commit, and the commission of, securities and wire fraud in connection with a scheme to induce victims to invest millions of dollars’ worth of digital funds for the purchase of unregistered securities, in the form of digital currency tokens issued by Centra Tech, through material misrepresentations and omissions."
Mayweather and Khaled both posted about investing in Centra Tech last year.
The founders of Centra Tech could face a minimum of five years in prison, per Biggs.