Founders of Cryptocurrency-Focused Tech Company Face Federal Fraud Charges
Sohrab Sharma and Robert Farkas told investors they were creating a debit card that would instantly convert cryptocurrency to legal tender, with the backing of Visa and Mastercard. Federal officials say none of it was true.
April 03, 2018 at 12:23 PM
3 minute read
Two heads of a tech company that raised tens of millions through an initial coin offering for what was sold as the world's first multi-blockchain debit card now face federal civil and criminal charges for allegedly defrauding investors.
Sohrab Sharma and Robert Farkas, identified by officials as the co-founders of Centra Tech Inc., were charged with securities and wire fraud by the U.S. Securities and Exchange Commission, and securities and wire fraud charges by the Justice Department. The charges were filed in the U.S. District Court for the Southern District of New York. The pair were arrested in Florida on Sunday, and appeared before the local district court on Monday.
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