back to article Floyd Mayweather-endorsed cryptocoin startup knocked out by fraud allegations

Two men have been arrested on suspicion of spinning a "web of lies" to sell unregistered crypto investments. The US Securities and Exchange Commission has alleged that Sohrab "Sam" Sharma and Robert Farkas, who co-founded "financial services startup" Centra Tech, made "ill-gotten" gains of $32m from thousands of investors …

  1. Anonymous Coward
    Facepalm

    Made $32m from thousands from investors

    'The US Securities and Exchange Commission has alleged that Sohrab "Sam" Sharma and Robert Farkas, who co-founded "financial services startup" Centra Tech, made "ill-gotten" gains of $32m" from thousands of suckers .. and doing exactly the same as the giant financial houses. Hello 'investors', cryptocurrencies are nothing more than snakeoil.

    1. Hans Neeson-Bumpsadese Silver badge

      Re: Made $32m from thousands from investors

      The article refers to investors, but in the context of them being victims. Yes, there was criminality behind this, but I can't help but think of the investors as 'victims' and 'greedy people out to make a quick buck without any real hard work' in equal measure.

      1. teknopaul Silver badge

        Re: Made $32m from thousands from investors

        Thats blaming gambling on punters

  2. Aladdin Sane Silver badge
    Facepalm

    I always take investment advice from sportspeople.

    I'm currently waiting for Ric Flair to launch his own ICO.

    1. asdf

      Re: I always take investment advice from sportspeople.

      No worries. Capitalism is remarkably effective at making sure someone with more money than brains don't stay that way long. Fraud just makes the process faster I suppose.

    2. Mayday
      Trollface

      Re: I always take investment advice from Ric Flair.

      I'd invest Woooooooooocoin.

  3. adam payne Silver badge

    The charges come amid growing concerns about fraudulent initial coin offerings and follows repeat advice from the SEC that investors should not trust celeb endorsements, pointing out that they may be part of a paid promotion.

    <sarcasm> What? celebs get paid to endorse products they probably don't use, when did this happen? </sarcasm>

  4. allthecoolshortnamesweretaken

    Looks like they've scammed the wrong investor.

  5. Anonymous Coward
    Anonymous Coward

    How many rounds of investment before the knock out blow?

  6. Blank Reg

    Crypocurrencies are inherently worthless, so to me cryptocoin startup == scam.

    1. This post has been deleted by its author

      1. Sorry that handle is already taken. Silver badge

        @soulrideruk

        I suppose you could say it has value to you because you came out ahead.

        However it is not economically productive and on balance has no real value. Moving money from the pockets of newcomers to those of early adopters and miners* is at best a zero sum game.

        Cryptocoins can't seriously be called currency because they're not in common use and aren't trivial to use.

        * and through the miners, manufacturers of mining equipment and power utilities.

        1. MonkeyCee Silver badge

          Re: @soulrideruk

          "I suppose you could say it has value to you because you came out ahead."

          No suppose about it. It has value because someone else thought it had value, and exchanged it for that.

          "However it is not economically productive and on balance has no real value. "

          That's pretty much the definition of money. It's better if it doesn't have real value (like currancy) so you don't have awkward situations like a 2p coin being worth 4p in scrap value.

          Money is an entirely fictional human creation, that is in no way connected to any real thing.

          Now, you won't get taught that until you're about a year into economics at university, because people would get very upset with the realization that it's all monopoly money and is only worth what someone else will give you for it.

          The best thing about crypto (IMHO) is it forces a bit of discussion as regards to what is money. Although there is a bit of the foamy mouthed "these magic beans are magic, those other beans aren't" rather than the more helpful observations. Like how there is considerably more money than stuff. You could buy *everything* in the world*, all the companies, all the land, all the land rights, all goods, everything that exists in the real world, for roughly one seventh of the money that currently exists. Exactly why this is the case is left up to the reader.

          Oh, and if we re-distributed all the money equally, every person in the world would have roughly 750k USD each.

          * in practise you couldn't, as prices would rise in response

        2. This post has been deleted by its author

  7. Nunyabiznes Silver badge

    Financial advice

    It is hard for me to have much sympathy here.

    It seems to me that putting faith in the financial advice of a guy that has blown the vast majority of his earned wealth on supporting his posse, various poor investments, many many confidential payouts, fraudulent business managers, etc isn't the best idea. But at least he has the excuse of being repeatedly beat about the head for his miscues. What excuse do the bilked investors have?

    1. Anonymous Coward
      Anonymous Coward

      Re: Financial advice

      Mayweather probably didn't have any involvement in this, one of his financial advisors cooked it up knowing that having a name people have heard of behind the ICO will help bring in the suckers. He probably didn't give any more thought to this than he would if his adviser told him "you're scheduled to do an ad for spaghetti sauce tomorrow morning"

  8. disgruntled yank Silver badge

    Endorsements

    I can sort of understand why people bought George Foreman grills: the man clearly thought a lot about food, and the technology was pretty well understood. This is not to say that Floyd Mayweather doesn't think a lot about money; but how well does he understand blockchain? (Nothing against boxers, by the way. I was astonished a couple of years ago to hear of people taking financial advice from the retired baseball player Lenny Dykstra.)

  9. Eduard Coli

    Truth in advertising

    It's no surprise "Pretty Boy Floyd" stumped for this burning bag of crypto-crap.

    His whole career has been a fraud.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Biting the hand that feeds IT © 1998–2020