Category Archives: Floyd Mayweather

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James Rodriguez Launches JR10 Coin in Wave of Superstar Crypto Endorsements

James Rodriguez, an icon of Colombian football commonly known as James, has announced that he is partnering with SelfSell to launch his own crypto token called the JR10, reports USA Today.

The launch of the JR token, so named after his number 10 position in the Columbian squad, will elevate him to being the first active international player to move into crypto space through the launching of his own asset.

In next month’s World Cup in Russia, James, who also plays for German club Bayern München, will lead a Columbian squad competing against group members Japan, Senegal, and Poland.

Rodriguez is not the first footballer to embrace the blockchain space following Barcelona and Argentina star Lionel Messi’s recent affiliation with Sirin Labs who have marketed a blockchain smartphone with the superstar’s endorsement. Michael Owen, ex Liverpool and England International, also recently unveiled his merchandising, Owen Coin, supported by the Singapore-based Global Crypto Offering Exchange (GCOX).

The exchange scored another coup in March, this time signing a boxer to promote the exchange. Philippines Senator, Manny Pacquiao, better known for being the only eight-division world boxing champion, invested in the company which specializes in allowing celebrities to create their own digital currencies.

Sportsmen joining other crypto-crazy celebrities dipping their toes into fintech water include Jamie Foxx, Paris Hilton, football superstar Luis Suarez, rapper The Game, and stand-up comedian Kevin Hart and Canadian two-time speed skating world record holder Ted-Jan Bloemen who became the first cryptocurrency-sponsored athlete, according to Cryptovest.

The most notable event this year was American Boxer Floyd Mayweather’s endorsement of blockchain firm Stox to 16 million Instagram followers raising USD 33 million in 34 hours. This resulted in charges being made against the company by the US Securities and Exchange Commission (SEC) over allegations that the (ICO) was a fraudulent activity.

Rodriguez claimed that he will be involved in a range of activities following the launch including interacting with his fans, suggesting that the coin can be used to “become a new engine to grow the global football market”.

 

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Centra Tech Founders Indicted by Grand Jury

The Attorney General of the Southern District of New York has announced that the founders of the cryptocurrency-based company Centra Tech Raymond Trapani, Sohrab Sharma, and Robert Farkas, have been indicted by a grand jury. This essentially means that charges against the founders have been formalized and the case will proceed to trial.

Centra Tech was developing a credit card which streamlined the process of spending cryptocurrency. Users could deposit their coins in an account linked to the credit card, and then when they want to make a purchase it works like a normal credit card by converting the cryptocurrency to USD.

Famous heavyweight boxer Floyd Mayweather had endorsed Centra Tech and put some posts on Instagram and Twitter showing how he was going around town buying things with the Centra Tech card, but these posts have since been deleted.

In order to raise money, Centra Tech released their own cryptocurrency in an initial coin offering (ICO) that raised over USD 30 million. ICOs are quite typical in the cryptocurrency world and usually occur without anyone being arrested, but where Centra Tech went wrong is they claimed to have partnerships with Visa, MasterCard, and Bancorp. This claim resulted in substantial investment, especially since Centra Tech used celebrity endorsements and glossy marketing materials to make themselves seem legitimate.

This attracted the attention of the Securities and Exchange Commission (SEC), which discovered that Centra Tech had no partnership with Visa, MasterCard, or Bancorp. The SEC halted the ICO and charged the founders with orchestrating a fraudulent ICO. They also charged Centra Tech with selling unregistered securities.

It is up for debate whether a cryptocurrency ICO counts as selling securities, but in this case, the SEC has decided the Centra Tech token does. The definition of a security is a financial instrument that holds monetary value, which is quite broad and could theoretically mean that any given cryptocurrency is a security. It is illegal in the United States to sell securities without registering with the SEC.

The Justice Department issued its own charges against the founders for conspiring to commit, and the commission of securities and wire fraud in connection with a scheme to induce victims to invest more than USD 25 million in investments through material misrepresentations and omissions.

The founders of Centra Tech were arrested prior to the Grand Jury Indictment and are sitting in jail until the trial is complete. Approximately USD 60 million of the founders’ money has been seized by authorities.

 

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Mayweather-Endorsed ICO Founders Charged with Fraud

The US Securities and Exchanges Commission(SEC) has charged Centra Tech co-founders, Sohrab Sharma and Robert Farkas, with fraud. Farkas was arrested over the weekend attempting to flee the US.

Their coin offering has been suspended after raising USD 32 million selling “unregistered securities”. The charge has been made by the SEC against Sharma and Farkas of “orchestrating a fraudulent coin offering”.

The SEC made a statement reporting that both Sharma and Farkas had no relationship with Visa, Bancorp, and Mastercard after claiming that they would be developing financial products backed by both credit card companies.  Cease and desist letters were issued by the above companies.

It is alleged that Sharma and Farkas sought out and paid celebrities to endorse the ICO, including boxer Floyd Mayweather and DJ Khaled. The agency also accuses the co-founders of creating fictitious executives and false marketing materials. Centra Tech claimed to have a Harvard MBA and banker Michael Edwards as a co-founder as CEO along with a Jessica Robinson as chief financial officer. Neither of these people actually existed.

A statement by the SEC alleges that “the defendants relied heavily on celebrity endorsements and social media to market their scheme”, going on to point out that “endorsements and glossy marketing are no substitute for the SEC’s registration and disclosure requirements”.

The SEC made it quite clear in January of this year that it wasn’t ready to ban coin offerings, but promised to chase down firms abusing the industry and selling unregistered assets, claiming “that its the bad behaviour of the people taking advantage of the technology we want to look at”.

This year the SEC hinted at cracking down on ICOs as it believes that many offerings are being conducted illegally.  SEC Chairman Jay Clayton suggested that “their promotors and other participants are not following our security laws. Some people say that’s because the law isn’t clear. I don’t buy that for a moment”.

Further regulation is still under discussion.

 

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