SEC Arrests Third “Mastermind” in Centra ICO Investigation

23.04.2018

The US Securities and Exchange Commission (SEC) announced charges against a third partner in their investigation of a $32 million initial coin offering (ICO) promoted by legendary boxer Floyd Mayweather.

The SEC arrested against Sohrab “Sam” Sharma and Robert Farkas, co-founders of Centra Tech, Inc., earlier in April on charges of defrauding investors in their $32 million ICO. However, the SEC amended their complaint on April 20, naming a third suspect, co-founder Raymond Trapani, also charging Trapani with fraud and naming him the “mastermind.”

According to the complaint, “defendants promoted the Centra ICO by touting nonexistent relationships between Centra and well-known financial institutions, including Visa, Mastercard and The Bancorp,” engaging in “fraudulent conduct” and making “material misstatements and omissions designed to deceive investors.”

Centra claimed to provide a debit card that would allow holders of cryptocurrencies to spend their virtual funds “in real time” at locations anywhere in the world that accept Visa and Mastercard.

According to the SEC, Trapani “was responsible for a variety of issues relating to the fraudulent offering, including managing the distribution of Centra Tokens to investors and responding to individual investors’ questions and complaints concerning the offering.”

The complaint calls for permanent injunctions, the return of allegedly ill-gotten investments, plus interest and penalties, as well as barring Trapani from serving as a public company officer or director and from offering securities.

Latest news

19.06.2018
New Token Listings: Constellation (DAG), Merculet (MVP), and MediBloc (MEDX) Token pairs of initial coin offering (ICO) projects Constellation (DAG), Merculet (MVP), and MediBloc (MEDX) were listed on several different exchanges June 19.
18.06.2018
Suspects Finally Arrested and Charged in $1.8 Million Ether Kidnapping from 2017 A cryptocurrency millionaire was robbed of his holdings at gunpoint by four men in New York in November 2017. Only one of the suspects was apprehended and charged in December 2017, but the law has finally caught up with the three other accomplices.
18.06.2018
ICON Announces Swap of ERC20 ICX Tokens to Mainnet Tokens After releasing its mainnet in January 2017, ICON (ICX) has announced that their older ERC20 tokens can now be swapped for mainnet tokens on select exchanges and via the ICONex wallet.