$25M ICO scam: Third Co-founder of Central Tech agrees to plead guilty

Another founder of Centra Tech, a supposed digital currency company, has agreed to plead guilty for an ICO scam they conducted, ripping unsuspecting investors about $25 million. The company used celebrities to advertise their fraudulent business. Now, the three founders of the company await their sentencing in court. 

Central Tech founders plea guilty to $25 million ICO scam

The cryptocurrency firm co-founder, Sohrab “Sam” Sharma has finally decided to join his colleagues in pleading guilty for their presenting a fake initial coin offering (ICO) to investors. According to Bloomberg’s report on Monday, Sharma’s lawyers admitted this intention to United States District Judge Lorna G.

Prior to Sharma’s decision, he was expected to appear in court for trial in the next four months. The other two founders of Central Tech, namely Raymond Trapani, and Robert Farkas, already pleaded guilty for the fraudulent cryptocurrency business. Following the report, Farkas’ sentencing is scheduled to hold in October. 

The other two founders of the company, Trapani and Sharma’s sentencing will follow afterward, per se.

The ICO scam business

Before starting the cryptocurrency company, the three founders had worked at Miami Exotics, a Florida-based luxury-car rental service. Using celebrities on the likes of popular DJ Khaled and Mayweather, Central Tech raked in a significant number of victims quickly. 

According to the prosecutors, the founders of Central Tech convinced the unsuspecting investors to invest in the fake offering of their token dubbed Centra tokens. While hyping the ICO scam business, the founders claimed that their CEO was Harvard-educated, and possess rich knowledge in the industry. 

They also claimed that the CEO held partnerships with several companies like Visa and MasterCard. Part of the complaints accused the trio of developing fake debit cards, which they called Centra Card. The investors were led to believe that the card will enable them to purchase items at any store that accepts MasterCard or even Visa. 

Cryptopolitan has recently shared a guide on how to avoid ICO scams.