Revision 983747875 of "Centra Tech" on enwiki

{{Pp-30-500|small=yes}}
'''Centra Tech''' (ticker symbol CTR) was a company that sold $32 million of [[cryptocurrency]] in an [[initial coin offering]] (ICO) in 2017. The main selling point of the ICO was that Centra had entered into a partnership with [[Visa Inc.]] to issue a [[debit card]] for cryptocurrencies; the claim was denied by Visa.<ref name="SEC complaint"/><ref name="NYTimes04022018">{{cite news|last1=Popper|first1=Nathaniel|title=2 Founders of $32 Million Centra Virtual Currency Project Are Arrested|url=https://www.nytimes.com/2018/04/02/technology/virtual-currency-arrest-centra.html|accessdate=April 5, 2018|work=New York Times|date=April 2, 2018}}</ref>

== 2017 ''The New York Times exposé'' ==

''[[The New York Times]]'' had exposed many of the activities of Centra Tech in an October 27, 2017 article, including its use of endorsements from [[Floyd Mayweather Jr.]] and [[DJ Khaled]], and that Sharma had previously been indicted for perjury related to an alleged drunk driving incident. The CEO of the firm, "Michael Edwards", was fictitious and, in its sales material, the company had claimed that a photograph of a person taken from the Internet was Edwards.<ref name="NYTimes10272017">{{cite news|last1=Popper|first1=Nathaniel|title=How Floyd Mayweather Helped Two Young Guys From Miami Get Rich|url=https://www.nytimes.com/2017/10/27/technology/how-floyd-mayweather-helped-two-young-guys-from-miami-get-rich.html|accessdate=April 5, 2018|work=New York Times|date=October 27, 2017}}</ref>

== 2018 indictments ==

Two founders of the company, Sam Sharma and Robert Farkas, were arrested April 1, 2018 on federal charges that included [[securities fraud]], conspiracy to commit securities fraud, [[wire fraud]], and conspiracy to commit wire fraud. The following day, the U.S. [[Securities and Exchange Commission]] (SEC) filed a civil suit against Sharma and Farkas, alleging securities fraud and seeking to shutter the company.<ref name="SEC complaint">{{cite web|title=SEC Complaint against SOHRAB ("SAM") SHARMA and ROBERT FARKAS|url=https://www.sec.gov/litigation/complaints/2018/comp-pr2018-53.pdf|website=sec.gov|accessdate=April 5, 2018|date=April 2, 2018}}</ref> On April 20, a third co-founder, Raymond Trapani, was also charged.<ref>[https://www.justice.gov/usao-sdny/pr/third-co-founder-cryptocurrency-company-charged-manhattan-federal-court-scheme-defraud DOJ] "Third Co-Founder Of Cryptocurrency Company Charged In Manhattan Federal Court With Scheme To Defraud Investors", United States Attorney's Office, Southern District of New York, Department of Justice; April 20, 2018. Retrieved December 1, 2018.</ref> In May 2018, all three co-founders were indicted for fraud.{{cn|date=May 2019}}

== Aftermath ==

In November 2018, both Mayweather and Khaled agreed to a financial settlement with the [[Securities and Exchange Commission]] (SEC) for failing to disclose payments accepted from issuers of initial coin offerings, including Centra Tech.<ref>{{Cite news|url=https://www.washingtonpost.com/entertainment/music/mayweather-dj-khaled-settle-over-digital-coin-promotions/2018/11/29/2e111ac6-f433-11e8-99c2-cfca6fcf610c_story.html|title=Mayweather, DJ Khaled settle over digital coin promotions|last=Gordon|first=Marcy|date=November 29, 2018|work=The Washington Post|access-date=December 1, 2018}}</ref> In June 2020, the Justice Department announced that Farkas had plead guilty to fraud.<ref>{{cite web|url=https://www.justice.gov/usao-sdny/pr/co-founder-cryptocurrency-company-pleads-guilty-role-ico-fraud-scheme|title=Co-Founder Of Cryptocurrency Company Pleads Guilty For Role In ICO Fraud Scheme|date=2020-06-16|author=Attorney's Office, Southern District of New York}}</ref>

== References ==


{{Reflist}}

{{Cryptocurrencies}}

[[Category:Cryptocurrency articles]]
[[Category:Ethereum tokens]]