Centra Tech Co-Founder Sentenced One-Year in Prison Over $25 Million ICO Scam
Robert Farkas, 34, the co-founder of the cryptocurrency firm Centra Tech was sentenced to a year in prison on Tuesday by US District Judge Lorna G. Schofield in Manhattan.
Farkas pleaded guilty to tricking investors of over $25 million in an investment scam that was promoted by the likes of Floyd Mayweather and musician DJ Khaled, who settled their own charges with the SEC for failing to disclose that they had been paid to promote the project.
The other two co-founders have also pleaded guilty to their roles in the scam.
The guilty parties solicited investors in 2018 to commit frauds to an initial coin offering (ICO) for its “Centra Tokens” by falsely claiming that they have developed a debit card that will allow the users to make purchases with digital currency at businesses accepting Mastercard and Visa, said prosecutors.
In other news, the Public Prosecutor’s Office of the Argentine city of Córdoba indicted 12 people in connection with the Onecoin Ponzi scheme last week.
One of the biggest scams in crypto history, this Bulgaria-based project netted about $4 billion.
The local police carried out multiple raids and arrested eight people over the years in different countries. Onecoin founder Ruja Ignatova, who was also indicated, is still at large.