Two Founders Of Cryptocurrency Offering Arrested, Charged With Fraud

from ars technica

The creators of an initial coin offering (ICO) once endorsed by Floyd Mayweather and DJ Khaled have been arrested and indicted on separate federal securities fraud charges brought by federal prosecutors and the Securities and Exchange Commission. Earlier this year, the SEC shut down another ICO, known as AriseBank.

In 2017, according to the SEC, Sohrab “Sam” Sharma and Robert Farkas, who founded Centra Tech, managed to raise $32 million from thousands of people for their “CTR Token,” an Ether-based coin.

The organizers had claimed in 2017 that they had a Visa and MasterCard debit card service that would allow users to “instantly convert hard-to-spend cryptocurrencies”—but no such relationship with those companies apparently existed.

More here.

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