Centra Tech: Floyd Mayweather backed ICO indicted for fraud

15 May, 2018
by Ryan McInally
News
Centra Tech: Floyd Mayweather backed ICO indicted for fraud

In a statement released today by the U.S Department of justice, three co-founders of cryptocurrency startup Centra Tech have been indicted for fraudulent activity based on an ICO they held in 2017.

According to the indictment issued by the U.S District Court in Manhattan, all three co-founders, Sohrab Sharma, Robert Farkas and Raymond Trapani are being charged with securities fraud, wire fraud and conspiracy charges.

According to The New York Times, during Centra Tech’s ICO they raised $32 million from investors. The group is accused of misleading investors by making false claims that Centra Tech had partnered with credit card companies Visa and Mastercard. According to the report, they had claimed to be able to issue currency debit cards.

In April, CoinTelegraph had released a report that popular boxer and philanthropist, Floyd Mayweather and popular artist DJ Khaled had promoted. ICO’s, according to (SEC) Commissioner Robert Jackson are becoming increasingly hard to tell the “difference between investments and fraud.”

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