Three Indian-origin men based in Florida has been charged by US federal authorities in the case pertaining to defrauding investors through their cryptocurrency startup company called Centra Tech. The trio has raised more than $60 million from their victims in form of a crypto token issued by Central.
The three men Sohrab Sharma(27), Raymond Trapani (27) and Robert Farkas (31) were arrested by police last month on the basis of a criminal complaint filed by one of the investors in their schemes. Following the arrest, the FBI has also seized 91,000 units in Ether that were raised from victims.
According to the allegation in the indictment, the three men began raising funds from investors through ICO in approximately July 2017, where potential investors were misled by telling that they had a partnership with Bancorp, VISA and MasterCard to issue Centra Cards licensed by Visa or Mastercard. And, Centra Tech had obtained several licenses including of a money transmitter in 38 states.
At the end of Oct 2017, Centra Tech’s ICO raised digital tokens worth more than $25 million and due to the increased value of the tokens, its present worth is now standing more than $60 million.
The attorney for the United States Robert Khuzami said: “As alleged, the defendants conspired to capitalise on investor interest in the burgeoning cryptocurrency market. They allegedly made false claims about their product and about relationships they had with credible financial institutions, even creating a fictitious Centra Tech CEO,”
All the three accused have been charged in a four-count indictment that in all carry a prison term of up to 65 years.
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