The Securities and Exchange Commission today accused two co-founders of an alleged financial services company charged with a false initial coin offerering (ICO) that raised over $ 32 million dollars from thousands of investors last year.
The authorities have accused and arrested both defendants.
One of the founders, Farkas was about to leave the country, but was arrested before he could get on board his flight. The authorities also arrested the other resposable Sharma.
The SEC complaint claims that Sohrab “Sam” ?? Sharma and Robert Farkas, co-founders of Centra Tech. Inc.,created a fraudulent ICO in which Centra offered and sold unregistered investments through a “CTR Token”. Sharma and Farkas argue that funds raised in the ICO will help build a suite of financial products.
For example, they were offering a debit card supported by Visa and MasterCard that would allow users to instantly convert cryptocurrencies difficult to spend in US dollars or other legal currencies. According to the SEC, Centra had no relationship with Visa or MasterCard. The SEC also claims that to promote the ICO, Sharma and Farkas created fictitious executives with impressive biographies, published fake or misleading marketing materials on the Centra website.
Investors of Centra’s ICO who consider themselves a victim should contact www.SEC.gov/tcr. The SEC Office of Investor Education and Advocacy has published an Investor Bulletin on initial coin offering and further informations are available on Investor.gov and SEC.gov.
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