DJ Khaled is being sued for endorsing a cryptocurrency company that essentially went belly up and, in doing so, allegedly screwed investors out of millions of dollars.
Back in 2017, Khaled, as well as boxer Floyd Mayweather, endorsed a company called Centra Tech. At one point, the music producer even called the virtual currency company the "ultimate winner" and a "game changer."
The endorsements and claims worked, too, and Centra Tech raised $32 million in its initial offering, according to TMZ, who cited the lawsuit.
However, according to TMZ, the Securities and Exchange Commission says the company behind the cryptocurrency company was operating illegally and was misleading investors. In addition, the SEC said the website listed several executives who didn't even exist.
Then, in April, Centra Tech basically become radioactive after the founders of the company were arrested for charges of securities fraud, wire fraud and several conspiracy charges.
Since all this went down, investors said the value of the Centra Tech coin has dropped from $1 per coin to $0.02 per coin.
In the lawsuit, investors are suing not only the company's founders, but also the celebrity endorsers like Khaled and Floyd. They are seeking their millions back, plus damages.