Click For Photo: https://techcrunch.com/wp-content/uploads/2018/02/gettyimages-852407924.jpg?w=600Click For Photo: https://techcrunch.com/wp-content/uploads/2018/02/gettyimages-852407924.jpg
The U.S. government is following through on its promise to crack down on initial coin offering scams. On Friday, the SEC announced charges against Raymond Trapani, the third co-founder of Centra Tech Inc., which raised $32 million for a cryptocurrency debit card last year through a flashy ICO endorsed by DJ Khaled and boxer Floyd Mayweather. The company’s other two co-founders, Sam Sharma and Robert Farkas were charged and arrested earlier this month.
“We allege that the Centra co-founders went to great lengths to create the false impression that they had developed a viable, cutting-edge technology,” the SEC’s Cyber Unit Chief Robert A. Cohen said of the ICO . “Investors should exercise caution about investments in digital assets, especially when they are marketed with claims that seem too good to be true.”
SEC - Trapani - Mastermind - ICO - Scheme
The SEC calls Trapani the “mastermind” of the fraudulent ICO scheme, which lured investors with claims of major credit card partnerships, misrepresentations about the...
Wake Up To Breaking News!
"It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift