Cryptocurrency Co-Founder Sentenced to Eight Years in Jail
Centra Tech Scam Results in Jail Time
Sohrab Sharma Faces Eight-Year Sentence
Sohrab Sharma, co-founder of the cryptocurrency firm Centra Tech, has been sentenced to eight years in jail. Sharma, also known as Sam Sharma, was convicted of engaging in an illegal initial coin offering (ICO) that defrauded investors of approximately $25 million. Sharma, along with his co-defendants Robert Farkas and Raymond Trapani, founded Centra Tech in or around July 2017.
The trio lured investors with promises of a Centra Card, a crypto debit card supposedly issued by Visa or Mastercard. They claimed to have partnerships with 38 state money transmitters.
The Centra Tech ICO raised over $25 million from investors, who were promised returns on their investments. However, the company's claims were later found to be false, and the money raised was never used to develop the Centra Card. In fact, the card was never released.
Sharma and his co-defendants were charged with conspiracy to commit wire fraud, securities fraud, and money laundering. Farkas and Trapani previously pleaded guilty and were sentenced to one year and two years in prison, respectively.
The sentencing of Sharma sends a clear message that the SEC will not tolerate fraud in the cryptocurrency industry. Investors should be wary of any ICO that makes unrealistic promises or claims to be associated with established financial institutions.
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