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Centra Tech Founder Arrested Over Fake ICO

Jake Hill
Jake Hill

Centra Tech Inc, A Cryptocurrency company co-founder Raymond Trapani was arrested on Friday. The arrest was due to cheating investors into funding more than $25 million by lying about an ICO.

According to Bloomberg, The Company Centra Tech is making false claims of having developed a prepaid card allowing users to make purchases with cryptocurrency at any business that accept Visa or MasterCard.

Last Month two co-founders of the same company Sohrab Sharma and Robert Farkas were arrested. All the three co-founders are accused of conspiracy, securities fraud, and wire fraud, as well as civil claims by the U.S. Securities and Exchange Commission.

“While investing in virtual currencies is legal, lying to deceive investors is not,” said Robert Khuzami, deputy U.S. Attorney for Manhattan.

The co-founders lied to the investors about having a Harvard educated chief executive officer to run the company and also different aspects of the business. All three of them worked under a well-reputed luxury car rental company “Miami Exotics”.

The cryptocurrency company was promoted by boxer Floyd Mayweather and music producer DJ Khaled plus some other celebrities. And through the fame on social media, the company was able to immediately raise money.

What do you think about this fraud committed? Let us know in the comments below.

Blockchainfraud

Jake Hill

Coming from a University Education in Computer Science, I am interested in blockchains and Bitcoin since 2014 and even mined at the time. The rumors of Bitcoin bubble made me run away, but I have com