Founders of a DJ Khaled-endorsed ICO have been charged with fraud

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The two co-founders of Centra, a cryptocurrency initial coin offering (ICO), that was endorsed by musician DJ Khaled and boxer Floyd Mayweather, have been arrested and charged with fraud. 

The U.S. Securities and Exchange Commission (SEC) alleges that Sohrab “Sam” Sharma and Robert Farkas “masterminded a fraudulent ICO in which Centra offered and sold unregistered investments through a ‘CTR Token.'”

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The charges boil down to Sharma and Farkas making promises to investors that were completely unfounded, including offering a debit card backed by Visa and MasterCard, even though they had no relationship with either company. Furthermore the SEC alleges that the two “created fictional executives with impressive biographies, posted false or misleading marketing materials to Centra’s website, and paid celebrities to tout the ICO on social media.” Read more…

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