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Crypto Founder Admits cheating Investors Out Of $25million
NEWS

Crypto Founder Admits cheating Investors Out Of $25million

 

Robert Farkas and two other founders of Centra Tech Inc., (an alleged Cryptocurrency Firm) Sohrab Sharma and Raymond Trapani, were charged in 2018 with misleading investors by claiming to have developed a debitcard allowing users to make purchases with digital currency at any business accepting Visa or Mastercard.

Farkas pleaded guilty on Tuesday in federal court in Manhattan to conspiracy to commit securities fraud and wire fraud, appearing by phone before US Magistrate Judge James Cott.

He faced as much as a decade in prison under the charges, but under a plea agreement prosecutors agreed to seek a sentence of 70 to 87 months and a fine of as much as US$250,000.

The trio founded Centra Tech after working at a luxury car rental company in Florida called Miami Exotics, according to prosecutors.

They raised money rapidly with help from social media mentions by celebrities including boxing promoter Floyd Mayweather and music producer DJ Khaled. They also lied in about having a Harvard-educated chief executive officer and other aspects of their business and failed to register the coin offering, the US alleged.

Sharma and Trapani are scheduled to go to trial in November.

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