In New York, the founders of Centra Tech are now facing securities fraud, wire fraud, and conspiracy charges related to an alleged cryptocurrency fraud. Robert Farkas, Sohrab Sharma, and Raymond Trapani are accused of fraudulently raising $32M from investors during an initial coin offering (ICO).
Prosecutors claim that the men misled investors into thinking that the Centra tokens they had invested in had partnership deals with Visa, Bancorp, and Mastercard. These agreements supposedly involved the issuance of debit cards that would allow them to spend the cryptocurrency at any business that accepted Mastercard or Visa. Farkas, Sharma, and Trapani are accused of lying about a fake CEO and licenses for money transmitters. They also are accused of making misrepresentations and omissions.
Last month, the Federal Bureau of Investigation arrested the company co-founders and confiscated 91,000 Ether units in digital money valued at $60M.