The founder of a cryptocurrency company has acknowledged that he lied to investors to invest more than $ 25 million in their ICO initiative.
Sohrab Sharma and Raymond Trapani, two other founders of Robert Farkas and Centra Tech Inc.; In 2018, they were accused of making investors misleading that they would issue a debit card that they could use in any business that passed VISA or Mastercard and spend with digital money. Sharma and Trapani are expected to appear in court in November.
Farkas was found guilty of security fraud, digital fraud and conspiracy in his court on Tuesday. While Farkas was sentenced to 10 years in prison, prosecutors accepted a request for a prison sentence of 70 to 87 months in addition to a 250,000 dollar fine as part of the confession bargain.
From luxury car company in Miami to crypto money fraud
After the triple worked at a luxury car rental company in Miami, they founded Centra Tech. Fundraising was very fast. They achieved this in a short time with the tagging of famous boxer Floyd Mayweather and music producer DJ Khaled on social media. They also gained fame by saying that they had a Harvard-trained CEO. Lying on many issues related to the company, the trio also failed the ICO recording.
