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$32M Centra Tech ICO founders arrested for fraud scheme, token loses 58%

03 April 2018 21:00, UTC

Digital currency market observers report about the U.S. SEC complaint towards another ICO which has turned out to be a fraud. According to the Securities and Exchange Commission, the false information has been provided on the project website - as it often happens in the sphere, experienced managers from the founders’ list have never existed in the real world.

Another major securities trade laws violation by Centra Tech is the information on partnership agreements with various companies the representatives of which would actually be surprised to hear about this ICO.

What separates this offering from other fraudulent businesses is that it has managed to establish itself on the market much better and its token was even listed on Coinmarketcap, while the company attracted $32 million dollars of investment. This sum will now be confiscated, but  the SEC does not deem it enough to reach total justice on this issue. Additional charges have been imposed on Sohrab Sharma and Robert Farkas, the real people behind the organization.

According to the press, at some point this ICO about crypto credit cards has been supported by a popular U.S. boxer Floyd Mayweather who has deleted the promotional post from his social media since then. Quite possibly, the news about the true nature of Centra Tech has reached him as well.

Image courtesy of Centra Tech