SEC Charged Co-Founders Of Centra For Indulging In Fraud
Apr 03, 2018 Posted / 929 Views
Securities and Exchange Commission (SEC) of United States busted co-founders of a start-up with arranging a deceitful Initial Coin Offering (ICO).
The fellow benefactors of Centra Tech., Robert Farkas and Sohrab Sharma were captured and charged in the wake of bringing $32mln up in unregistered speculations through a “CTR” token. Farkas tried to leave the country but was caught before taking the flight.
As indicated by SEC, the two co-founders would offer an assortment of financial products including a Debit Card sponsored by Visa and MasterCard, with which clients could in a split second change over digital currencies into US Dollars. SEC further mentioned that no such relationship existed between Centra Tech. and Visa or MasterCard.
SEC claims that Farkas and Sharma advanced their deceitful ICO by making impressive resumes and memoirs and in addition paying celebrities to promote the ICO. American boxer Floyd Mayweather bolstered the ICO on instagram which has since been removed.
The Co-Director of SEC’s Division of Enforcement said, “We allege that Centra sold investors on the promise of new digital technologies by using a sophisticated marketing campaign to spin a web of lies about their supposed partnerships with legitimate businesses. As the complaint alleges, these and other claims were simply false.”
The SEC wants to banish the two co-founders from filling in as Public Officers and from indulging in any offering of securities, digital or something else.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.