Crypto

Three Co-founders Of Centra Tech Cryptocurrency Are Charged With A Fraudulent ICO

Sohrab “Sam” Sharma and Robert Farkas the co-founders of Centra Tech, a Cryptocurrency firm have a case to answer. According to the US Attorney’s Office for the Southern District of New York, the duo was carrying our fraudulent activities. Some of these activities have led to the fleecing off investors their hard earned investment. The high-grossing initial coin offering (ICO) had obtained endorsement from legendary boxer Floyd Mayweather.

In a statement, the U.S. Securities and Exchange Commission (SEC) alleged that the two may have been making material misstatements and omissions. At some point, they are being accused of deceiving investors about their partnerships with large financial institutions in an effort to gain their trust. SEC claims that Centra did not have any business relationships with neither Visa nor MasterCard, which the two adversely talked about.

The capitalization on investor’s interest in the burgeoning Cryptocurrency market

Sharma and Farkas must have been very smart in their attempt to take up the budding Cryptocurrency market. They had worked out their way into giving the scheme more credibility. It is unfortunate that their victims did not notice any red flags perhaps because at the point of the offering the company raised $32 million. Their aim was to take advantage of the unsuspecting investors.

The US Attorney Robert Khuzami said,”…………………. They allegedly made false claims about their product…………………. even creating a fictitious Centra Tech CEO.”

The US authorities have been clamping down on fraudulent ICOs

The Centra co-founders must have been daring enough to carry out their activities right under the nose of the authorities. Alongside the US authorities, SEC has been seeking to close activities of fraudulent ICOs and which have been breaching anti-fraud and registration provisions. There is already so many resources going into the ICO market according to Jay Clayton, the head of the SEC.

Nonetheless, ICO scams continue to be a wild west in many countries given that AriseBank was also a victim earlier in the year. Meanwhile, the federal court has ruled the return of the allegedly stolen funds. The complaint is also seeking that the two are barred from carrying out any ICO or securities offering.