1. Home
  2. News
  3. Regulation

SEC Arrests Third “Mastermind” in Centra ICO Investigation

SEC Arrests Third “Mastermind” in Centra ICO Investigation

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.

23 Apr 2018

Subscribe to our newsletter

Our newsletters are sent on a regular basis and are aiming to provide you most overall market situation

Latest news

Gates Foundation Partners With Blockchain Startup Coil

The Gates Foundation has announced ...
18 Oct 2018

ICO came

ICO came...
18 Oct 2018

New Token Listing: Alt.Estate

A trading pair of initial coin offe...
18 Oct 2018

Crypto Market Prices Could Increase Tenfold In Coming Years

The cryptocurrency market could see...
17 Oct 2018

New Token Listings: UbiatarPlay, Menlo One and Tezos

Trading pairs of initial coin offer...
17 Oct 2018

OKEx Listed Four Stablecoins Simultaneously

The Hong Kong-based cryptocurrency ...
17 Oct 2018

Telegram’s Blockchain-Based Platform Almost Ready

TON, a blockchain-based platform fr...
17 Oct 2018

ICORating Is Media Partner For The Startup Battle

ICORating is a media partner of the...
16 Oct 2018

New Release: CyberMiles

CyberMiles (CMT) has officially lau...
16 Oct 2018