Centra Tech’s third co-founder arrested and charged with $ 25 million in crypto fraud
As it became known from a press release from the US Department of Justice, on April 20, Raymond Trapani, the third co-founder of the crypto startup Centra Tech, which was engaged in financial services, was arrested. He is accused of more than $ 25 million in securities fraud and the use of electronic communications, which were raised as a result of the ICO..
Two other founders of the startup, Sohrab Sharma and Robert Farkas, were arrested and charged under the same charges in early April. Sharma, Farkas, and Trapani promoted the Centra Card, a debit card allegedly backed by Visa and Mastercard that would allow cryptocurrencies to be converted into fiat currencies..
According to the US Securities and Exchange Commission (SEC), in fact, there was no partnership between Centra and these payment systems..
In a press release, the US Department of Justice also said that after the organizer of another fraudulent ICO unrelated to Centra was arrested in New York last fall, Sharma asked Trapani and Farkas to remove all false information about Centra’s partnership with Visa from their website. : “I would first remove all misinformation. Now. And then I would have worried. Anything that is not true, we need to remove “.
“It is alleged that Raymond Trapani conspired with his co-defendants to lure investors with false information about their product and relationships with reliable financial institutions. If investing in virtual currencies is legal, then a lie that misleads investors is not, “Deputy Prosecutor Robert Khuzami said in a press release from the agency..
Centra Tech was advertised by celebrities like boxer Floyd Mayweaver and DJ Khaled. Last fall, the SEC issued a warning that celebrity ICO advertisements could be illegal if they do not disclose the amount of the reward received for it..