The third co-founder of crypto financial services startup Centra Tech Raymond Trapani has been arrested yesterday, April 20, and charged with securities and wire fraud of more than $25 mln associated with the company's Initial Coin Offering, according to the US Department of Justice's press release April 20.
The two other co-founders, Sohrab Sharma and Robert Farkas, were arrested and charged of the same offenses earlier in April.
Sharma, Farkas, and the now also arrested Raymond Trapani advertised the "Centra Card," a debit card that was reportedly backed by Visa and Mastercard, which allowed users to convert crypto into fiat currencies.
The US Securities and Exchange Commission reports that no partnership actually existed between Centra and the two credit card companies.
According to the DOJ's press release, after the founder of an unrelated allegedly fraudulent ICO was arrested last fall, Sharma asked Trapani and Farkas to remove all false information, "Fufu," about Centra's deal with Visa from their website: "I rather cut any fufu ... Now ... Then worry ... Anything that doesn't exist current ... We need to remove."
"As alleged, Raymond Trapani conspired with his co-defendants to lure investors with false claims about their product and about relationships they had with credible financial institutions. While investing in virtual currencies is legal, lying to deceive investors is not."
Centra Tech had been promoted by celebrities like boxer Floyd Mayweather and DJ Khaled.
Last fall, the SEC had warned the public that celebrity endorsements of ICOs could be illegal if they don't reveal the compensation they receive for their advertising.
Third Co-Founder Of Centra Tech Charged With $25 Mln Securities Fraud
gepubliceerd op Apr 21, 2018
by Cointele | gepubliceerd op Coinage
Coinage
Recent nieuws
Alles zien
First Mover: What's Next for Bitcoin as Wall Street Gets Vaccine Booster
Bitcoin was higher for a second day, staying in a range of between roughly $15,200 and $15,600, as news of progress in developing a coronavirus vaccine appeared to touch off a rally in U.S. stocks.
Market Wrap: Bitcoin Fails to Break $15.9K; Over 50K ETH Staked on Eth 2.0 Contract
Bitcoin gained Wednesday while Ethereum 2.0 staking has been ramping up.
Citibank Analyst Says Bitcoin Could Pass $300K by December 2021
A senior analyst at U.S.-based financial giant Citibank has penned a report drawing on similarities between the 1970s gold market and bitcoin.
Blockchain Bites: Data Unions. Hard Forks. And One Citi Analyst's Case for $300K BTC.
A Citibank managing director thinks bitcoin could hit $318,000.