In yesterday’s press release from the Commission on securities and exchange Commission (SEC) announced the suspension of ICO cryptocurrency project Centra Tech.
The sensational news was the arrest of the two co-founders of the company — Sohrab Sharma and Robert Farkas, who is charged with appropriation of 32 million US dollars obtained through the sale of tokens Centra (CTR).
April 1, Farkas tried to leave the country, but was arrested right before boarding the flight.
According to the SEC, Charm and Farkas promised that the investments raised during the ICO will be used for the creation of new financial products, including debit cards supported by Visa and MasterCard. Using the card users could allegedly instantly convert crypto currency to United States dollars and other lawful means of payment.
The approval of the SEC between Centra and Tech companies Visa and Mastercard, no such agreement exists.
Financial guard USA maintains that Charm and Farkas promoted their fraudulent ICO, creating fictional leaders with impressive resumes and biographies, and by placing networks of “false or misleading materials.” In addition, the co-founders went on the popular move is to bring in the project of the celebrity. American boxer Floyd Mayweather for a fee, the ICO has supported them in your Instagram, but at the moment the post is already deleted.
Stephanie Avakian, co-chair of the group of SEC enforcement, said of the allegations:
“We contend that Centra was sold to investors the promise of new digital technologies using sophisticated marketing campaign to create the appearance of alleged partnerships with legitimate businesses. As stated in the complaint, these and other allegations were false.”
The SEC intends to collect with Charms and Farkas all collected their $32 million as well as penalties and interest. The intent of the Commission to prohibit them in the future to hold any leadership positions and to participate in the distribution of securities.
Also information on possible risks has published a leading cryptocurrency exchange Binance:
This is a special announcement about the high risks associated with the token CTR, based on information published earlier today, with regards to the fraudulent actions of the team Centra Tech. We will closely monitor the situation and take further action, including possible delisting. The required period of notice (minimum 72 hours) will be observed.
Course Centra reacted instantly and sank 58,85%.
The SEC has repeatedly warned investors that endorsed by celebrities ICO may be illegal. Also, the Commission notes that celebrity advertising the ICO may violate “the laws banning the advertisement of” if you do not disclose the fact that compensation for promoting the product.