Robert Farkas, the founder of $25 million ICO scam Centra Tech was condemned to 7 years in prison after pleading guilty in a Manhattan court on the 17th of June 2020.
Along with raising over 25 million USD from ICO fraud, Farkas was also accused of conspiracies of wire and security frauds. Farkas pled guilty to the charges and has been jailed for 87 months with a fine of $250,000.
The company was co-founded by two other people, Raymond Trapani and Sharma, who will both face trial by the end of 2020.
The business was founded on a pyramid of lies and incredible fallacies. One of the many lies includes a purported partnership with Visa or MasterCard to launch its credit card, which will be used to make crypto transactions. Sadly, it was exposed that the company had no agreement with any of the two firms.
The company lied to investors about their team members including their pseudo-anonymous CEO “Micheal Edwards”.
The ICO which was held in 2017 was supported by famous music producer, DJ Khaled and Floyd Mayweather. Both celebrities were charged for promoting the ICO and fined for misleading their followers.
Source: Cointelegraph
