Centra Tech, an infamous initial Coin Offering (ICO) scam back in the highlights again with the new updates on Shorab Sharma’s (Sam) plead on swindling investors, expected to take place in Nov.
In Centra Tech ICO scam, the three co-founders involved- Sohrab Sharma, Robert Farkas and, Raymond Trapani. The trio got charges on orchestrating the fraudulent ICO and fool the investors on the planned ICO scam by them. The trio before landing in cryptocurrency start-up has successfully completed the stint in Florida-based luxury-car rental company.
Allegedly, Centra Tech Inc. and the trio tried to con the investors based on unregistered securities and wire fraud while advertising a tricked debit card “Centra Card,” which according to the co-founders have developed with the support from the major firms like VISA and Mastercard in a partnership.
However, according to the US Securities and Exchange Commission (SEC) report, the claims are false and no partnership existed between Centra and the two key credit card companies.
The card proposes users to convert their cryptocurrencies into fiat currencies in seconds. During the time the company duped the investors to gain over $25 million via sham ICO while taking a back from paid celebrities.
Shorab Sharma is the 3rd Co-founder of Centra Tech Inc.- the crypto financial services startup which came up with a fake ICO (Centra tokens-CTR), took place in 2017. Sharma was arrested along with Farkas in April 2018. During the time, the U.S. Securities and Exchange Commission published in a press release.
In the latest updates, Sharma has decided to change his plea and may not have to face an upcoming trial in November. Bloomberg cited the information mentioning the reference from lawyers who told U.S. District Judge Lorna G. Schofield in a court filing on Monday, New York.
However, Farkas’s sentence is scheduled in October. And, another co-founder Raymond Trapani who was also arrested in April, has to face the trial in November.
Among few celebrities who assisted Centra Tech ICO are boxer Floyd Mayweather and musician DJ Khaled. Both of them also got charged by the Securities and Exchange Commission (SEC) to help trio co-founders of Centra Tech. As Mayweather and Khaled were involved in promoting the illegal ICO scam and reportedly, also did not disclose the about the payments received by them from Centra Tech during the illegitimate publicity while targeting investors through social media mentions.