Three Founders Of ICO Endorsed By Floyd Mayweather Indicted For FraudMay 15, 2018 2:08 pm
The U.S. Attorney for the Southern District of New York announced Monday the three co-founders of cryptocurrency firm Centra Tech have all been indicted by a grand jury, CoinDesk reported.
Raymond Trapani, Sohrab Sharma and Robert Farkas are all accused of planning to defraud investors through their company’s token sale, the report said.
In addition, U.S. Attorney Robert Khuzami further announced authorities recovered more than $60 million in funds from the co-founders, CoinDesk reported.
A release by the office revealed the three will be charged with counts of conspiracy and the commission of securities and wire fraud, the report said.
Centra, CoinDesk reported, allegedly offered “cryptocurrency-related financial products,” and its founders allegedly created “a scheme to induce victims to invest millions of dollars’ worth of digital funds for the purpose of unregistered securities.”
In addition, the three allegedly withheld important information or otherwise mislead investors, including claims about its ties to payments companies.
The company’s token sale was endorsed by heavyweight boxer Floyd Mayweather and claimed to have developed partnerships with Visa and Mastercard to create financial products, CoinDesk reported. The SEC said these partnerships never existed.
The charges were first revealed earlier this year when the U.S. Securities and Exchange Commission charged Sharma and Farkas with fraud, as previously reported. The Department of Justice later produced criminal charges of its own against all three co-founders, the report said.
The three remain in custody pending further court action.
– WN.com, Jack Durschlag