A Federal judge dismissed music magnate DJ Khaled, boxer Floyd Mayweather, and a pair of employees of an ICO company from a lawsuit filed by ICO investors.
Court documents have revealed that Judge Robert Scola filed an omnibus order on motions dismissing the Khaled, Mayweather and two employees identified as Steven Stanley and Steven Sykes. The four were said to have either participated or promoted Centra Tech’s initial coin offering.
Scola, who’s the federal judge of Florida’s Southern District, stated the plaintiffs were unable to prove they were influenced by the defendants’ when they purchased Centra Tech’s CTR tokens.
Khaled and Mayweather had promoted Centra Tech’s services to their followers and encourage them to join the securities sale that was later revealed to be unregistered. The two celebrities, along with Stanley and Sykes, were later sued by ICO investors who claimed the defendants disregarded securities law.
Insufficient Evidence From Plaintiffs
Scola explained that upon analysis, the plaintiffs were unable to “establish that Mayweather reached out to the Plaintiffs” or that he solicited them to buy CTR tokens.
The judge also pointed out that there’s no proof the Plaintiffs actually saw Mayweather’s promo materials on social media, or that they purchased the tokens because of it. The same argument was made regarding Khaled.
Total of $750k Settlement
The United States Securities and Exchange Commission (SEC) had charged the two celebrities last year of unlawfully promoting ICOs. Per regulations, compensation for promoting ICOs should be disclosed. Khaled and Mayweather failed to comply with this rule.
The two later agreed to a settlement where they neither denied nor admitted to the claims against them. Mayweather paid at least $600,000 in fines while Khaled shelled out more than $150,000.