A 27-year-old Indian-origin man and two other co-founders of a start-up cryptocurrency company have been intercepted a scheme to cheat investors, with authorities seizing digital currency worth more than USD 60 million raised from victims as part of the scheme.
Sohrab Sharma (27), Raymond Trapani(27) and Robert Farkas (31) were the three co-founders of a start-up company called Centra Tech. All three of them are charged in a four-count indictment that in all carry 65 years behind the bars. Thos convicted people are live in Florida.
A grand jury in the Southern District of New York returned an indictment charging the three with conspiring to commit securities and wire fraud in connection with a scheme to induce victims to invest millions of dollars’ worth of digital funds for the purchase of unregistered securities, in the form of digital currency tokens issued by Centra.
Following their arrests, the Federal Bureau of Investigation seized 91,000 Ether units, consisting of digital funds raised from victims as part of the charged scheme. This seized digital currency is presently worth more than USD 60 million.
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As part of this effort, they told potential investors that Centra Tech had formed partnerships with Bancorp, Visa, and Mastercard to issue Centra Cards licensed by Visa or Mastercard and that Centra Tech had money transmitter and other licenses in 38 States.
In October 2017, at the end of Centra Tech’s ICO, those digital funds raised from victims were worth more than USD 25 million. Due to appreciation in the value of those digital funds raised from victims, those digital funds are presently worth more than USD 60 million.
In a separate action, the Securities and Exchange Commission also filed civil charges against the three men.
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