Founder of cryptocurrency debit card faces new fraud charges for $32 million ICO scheme

TechCrunch | 4/20/2018 | Taylor Hatmaker
erinmmarion (Posted by) Level 3
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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...
(Excerpt) Read more at: TechCrunch
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