DJ Khaled, Floyd Mayweather dismissed from lawsuit against project that held $32M ICO

Quick Take

  • Rensel v. Centra Tech, Inc.
  • The three founders of Centra Tech project, which raised more than $32 million, are the subject of both an SEC enforcement action and are a criminal prosecution for fraud in federal court in Manhattan
  • This particular order grants a motion to dismiss by DJ Khaled, Floyd Mayweather, and Centra Tech CTO Steven Sykes
  • Even though these defendants were involved in a token sale that turned out to be a scam, their conduct (as alleged in the class action complaint) did not make them liable for sale of unregistered securities securities or securities fraud

Disclaimer: These summaries are provided for educational purposes only by Nelson Rosario and Stephen Palley. They are not legal advice. These are our opinions only, aren’t authorized by any past, present or future client or employer. Also we might change our minds. We contain multitudes.

As always, Rosario summaries are “NMR” and Palley summaries are “SDP".

[related id=1]Rensel v. Centra Tech, Inc., 2019 U.S. Dist. LEXIS 79855 (S.D. Fl., 17–24500, 5/13/2019) [SDP]

This case arises out of the Centra Tech initial coin offering (“ICO”) that took place between July 2017 and April 2018. The ICO raised “more than $32 million from thousands of investors.” Things didn’t go so well after that seemingly auspicious beginning. Three founders are the subject of both an SEC enforcement action and are being criminally prosecuted for fraud in federal court in Manhattan. Th