Cryptocurrency News

Mayweather Buys “Billionaire Watch” As Judge Calls His Crypto “An Unregistered Security”

The day before he bought a “Billionaire Watch” for $18 million, a Florida district court declared that an ICO (initial coin offering) for a startup cryptocurrency linked to controversial US retired boxer Floyd Mayweather Jr was an “unregistered security.”

If Floyd Mayweather Jr is nervous about the criminal case gathering around Centra Tech – the crypto he promoted in 2017 – he’s not showing it: While investors in the US threaten to sue Centra Tech for $32 million, earlier today (June 30) in Tokyo, Japan, Mayweather blew $18 million on a watch, but as this particular timepiece is called “The Billionaire Watch”, Floyd clearly believed he got a bargain.

Mayweather Tweeted Centra Tech ICO

Meanwhile, in a report carried out on Thursday to assess whether or not to freeze the assets of startup Centra Tech, Magistrate Judge Andrea Simonton declared the ICO and proposed cryptocurrency startup known as Centra Tech was an “unregistered security.” In 2017 Centra Tech managed to procure Mayweather to effectively be the face of the company, although Mayweather himself has not been accused of anything untoward.

Judge Simonton reached her decision following  the release of a report related to a class action lawsuit brought against the operators of Centra Tech, whose $32 million ICO was shut down by the Securities and Exchange Commission (SEC). Numerous investors are now suing Centra Tech for in effect selling unregistered securities. Such actions are a crime under federal law, and investors may yet be declared co-complicit.

Centra Tech’s CTR Passed “Howey Test”

In her report for the U.S. District Court of the Southern District of Florida, Judge Simonton said that Centra Tech’s proposed CTR tokens should be classed as a security, in accordance with the  “Howey Test” which states that an asset is a security if it meets three conditions; A) it is a form of  investment, B) investors would benefit from its success, and C) the expectation of profit comes solely from the efforts of others (e.g. the company’s founders).

Judge Simonton said in the report that CTR met all three of these conditions:

“Because the success of Centra Tech and the Centra Debit Card, CTR Tokens, and cBay that it purported to develop was entirely dependent on the efforts and actions of the Defendants, the third prong is satisfied. Therefore, the offering of Centra Tokens was an investment contract under the Securities Act, such that the Defendants sold or offered to sell securities by virtue of the Centra Tech ICO.”

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