Former world boxing superstar Floyd Mayweather is embroiled in an alleged multimillion dollar cryptocurrency scam.
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Mayweather landed a knockout blow for some investors when he messaged his 8 million social media followers endorsing an initial coin offering in 2017.
Mayweather told his fans he had invested in the Centra Tech ICO and encouraged to buy in before the scheme sold out.
“As usual I’m going to win big with this one,” said Mayweather in a now deleted Facebook post.
Unfortunately, Centra Tech was investigated by US regulators the Securities & Exchange Commission for misleading investors about the company’s promoted tie-ups with credit card giants Visa and MasterCard which both said did not exist.
Around 2,500 investors ploughed around $25 million in to the Ethereum ICO.
The ICO founders Sam Sharma and Robert Farkas were arrested for fraud and face a class action law suit.
Mayweather was not the only celebrity to endorse the ICO. Music producer DJ Khaled also posted messages about the float to his 12 million social media followers.
First blockchain smartphone
Smartphone maker HTC has released the blockchain-based HTC Exodus 1 for dedicated cryptocurrency nerds.
The $960 phone is blockchain encrypted, acts as a self-standing node and has dedicated storage separate from the rest of the phone for storing cryptocurrency keys.
And purchasers can only buy a handset with Bitcoin or Ethereum.
Pre-orders are available online in 34 countries, including the US, Britain, Singapore and Taiwan.
Besides the blockchain special features, the Android phone comes with 6GB of RAM, 126GB onboard storage, a front and rear camera and six inch screen.
Investors warned about fake watchdog approval
Financial watchdog the Securities & Exchange Commission has alerted investors about cryptocurrency start-ups alleging endorsements from the regulator.
The warning came as the SEC suspended start-up Simex for claiming the company’s business met all SEC regulations.
The claim stated Simex was partnered with an SEC qualified custodian for an ICO and officially registered under SEC rules.
But the regulator says this is not true and that too many cryptocurrency start-ups are implying approval for their ICOs from the SEC.
“The SEC does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering,” said Robert Cohen, chief of the SEC enforcement division’s cyber unit.
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