Sohrab Sharma, Raymond Trapani and Robert Farkas, founders of Centra Tech Inc., have been officially accused of fraudulently raising over $32 million from investors in an ICO, was announced on Monday.
Earlier, they promoted their startup on social media using celebrities like Floyd Mayweather Jr. and DJ Khaled, subsequently lying about their product and the relationships they had with financial institutions, according to prosecutors.
They promised to use the funds raised to create “the world’s first multi-blockchain debit card with a smart and insured wallet”. Sharma, Trapani and Farkas have each been charged with securities fraud, wire fraud and two counts of conspiracy, according to an indictment filed with the U.S. District Court in Manhattan.
In December, Centra Tech claimed that the lawsuit was “unfounded”.
By Nadya Astam