03 Apr The Money Team Gets Caught Up in ICO Scam
Cryptocurrency startup Centra Tech made waves last September after securing paid endorsements from big-time celebs like boxing legend Floyd Mayweather and music producer DJ Khaled, but its bullish media run might be over. The US Securities and Exchanges Commission (SEC) has arrested & charged its owners with fraud.
— Floyd Mayweather (@FloydMayweather) September 15, 2017
The leading cryptocurrency exchange desk Binance issued a warning against the company, informing users that its team is monitoring the situation closely. Binance further noted that in case its team opts to delist Centra Tech’s CTR token from its platform, it will give users a 72-hour notice.
“This is a special announcement about the high risk associated with the CTR token in light of the information released earlier today relating to the controversial and fraudulent acts by members associated with the Centra Tech team,” the exchange desk wrote in its announcement.
While Binance did not directly name the reason, its warning likely has to do with the investigation the SEC launched against Centra Tech earlier this week on April 2.
The SEC complaint claims Centra Tech co-founders, Sohrab “Sam” Sharma and Robert Farkas, orchestrated a fraudulent initial coin offering (ICO) to dupe gullible investors out of $32 million, as per a report from Gizmodo. The publication further notes Farkas was detained yesterday, trying to board a flight out of the country.
In addition to the misleading paid endorsements for its ICO from Mayweather and DJ Khaled, Centra Tech straight-up lied about partnerships with several high-profile companies including Visa, Mastercard, and Bancorp.
Here is the SEC complaint ordering the shady ICO to return all funds to investors:TMT-SCAM-SEC-v-SOHRAB-SAM-SHARMA-and-ROBERT-FARKAS