Sohrab Sharma, the co-founder of Centra Tech, reportedly relied on fake partnerships and endorsements from celebrities like boxing champion Floyd Mayweather to lure investors.
Robert Farkas, the founder of Centra Tech, will also have to forfeit $347,000 he gained from his fraudulent operation.
In their sentencing memorandum, prosecutors laid out their arguments as to why Robert Farkas deserved a heavy prison sentence.
The third cofounder of $32 million digital currency scam Centra Tech has changed his plea and is set to plead guilty to avoid his scheduled November hearing.
Robert Farkas, the co-founder of Centra Tech has pleaded guilty to two counts of fraud, each carrying a five year sentence for his role in the $32 million scam.
The co-founder of Centra Tech, a digital currency scam that raised $32 million in its ICO after celebrity endorsements, has agreed to plead guilty to fraud.
The crypto scheme, backed by celebrities including Floyd Mayweather and DJ Khaled, is accused of running an ICO scam with the intent of defrauding unsuspecting investors.
Investors who filed suit in Florida to have their case certified as a class-action lawsuit have been denied by U.S. District Judge Robert N. Scola, Jr.
Floyd Mayweather, DJ Khaled, and two Centra Tech employees escaped repercussions with respect to a lawsuit filed against the startup’s fraudulent ICO.
After the Securities and Exchange Commission (SEC) shuts down the Mayweather-backed ICO over fraud charges, the boxing champ might have to respond personally for his involvement.
Three people allegedly behind the cryptocurrency startup Centra Tech have each been charged with securities fraud, two counts of conspiracy and wire fraud.