Crypto News | Floyd Mayweather’s ICO favorite busted

Although celebrities endorsing ICOs is nothing new, these ICOs have always been at least a little bit fishy. Floyd Mayweather may have also bit off slightly more than he can chew when he publicly supported an initial coin offering by a so-called financial services startup called Centra Tech. Inc. Now the founders of the startup, Robert Farkas and Sohrab Sharma, have been charged by the Securities and Exchange Commission (SEC), which alleges that Floyd Mayweather’s ICO favorite was completely fraudulent. Centra Tech. Inc. raised $32 million during the ICO, after a large number of investors purchased their “CTR Token”. The investors were promised a number of advanced financial services, such as a debit card issued by VISA and MasterCard which would automatically convert crypto into fiat currencies. The SEC determined that neither VISA nor MasterCard were aware of this partnership. The team behind the ICO was also made up of fictional experts and executives with fake, overblown resumes. Floyd Mayweather’s ICO favorite did have a sophisticated marketing campaign, but everything about it was either false or misleading. Among the accusations, the SEC alleges that Centra Tech Inc. paid celebrities to promote their ICO. Last year in November, the SEC said that ICOs endorsed by celebrities could be illegal, since they go against “anti-touting laws” when the celebrities do not disclose how much they have been paid. The former boxer supported the ICO via Instagram, but has since deleted all of his posts. Farkas and Sharma were arrested while attempting to flee the country.

In other news, Coincheck, which was dealt a heavy blow by the Jan 26 NEM hack, may finally get a lucky break. Monex, a Japanese online trading platform, is looking to buy a majority stake at Coincheck, a deal which could be worth billions of Yen.  The money would go a long way towards helping Coincheck recover and fully restore its services. However, if Monex does acquire Coincheck, the crypto exchange would become its subsidiary, and all of the current management would be replaced.

Lastly, there may be some big changes on the horizon for Ethereum. On the one hand, Vitalik Buterin, Ethereum’s co-founder, suggested that a hard cap on Ethereum be introduced – limiting the total supply of ETH to 120,204,432, which is exactly twice as much as was sold during the initial sale of the token. Buterin argues that issuing new coins to miners is no longer effective and that the cap would ensure the economic stability of the platform. Piper Merriam, another Ethereum Developer, proposed an Ethereum hard fork a couple of days ago, to stop companies from developing ASIC mining hardware.


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Author: Max Rothstein

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