The Federal district court for the southern district of Florida came to the conclusion that tokens cryptocurrency project Centra Tech (CTR) are unregistered securities.

In the report of the magistrate judge Andrea Simonton (Simonton Andrea), which has been prepared in the framework of judicial proceedings initiated by the investors, Centra Tech, States that the CTR token corresponds to the three criteria test Howie. Simonton said that the investment became investment in assets, investors could profit from the success of the company and its success, as well as possible failure, depended entirely on the efforts of its founders.

“As the success of a Tech Centra, Centra Debit Card, tokens CTR and platform cBay, who planned to develop, depended on the efforts and activities of the defendants, the third criterion (Howey test) is also observed. Thus, a sentence token Centra was an investment contract under the securities act, and the defendants sold or offered as securities with ICO, Centra Tech,” said Simonton.

We will remind that the Commission on securities and exchange Commission (SEC) in early April this year, has suspended the ICO project Centra and arrested two of its organizers, accusing them of fraud. In the opinion of the financial regulator, the company’s founders Centra Tech Sorab Sharma (Sohrab Sharma) and Robert Farkas (Robert Farkas) raised $32 million by offering investors unregistered securities. After almost three weeks of the third co-founder of the project, Raymond Trapani (Trapani Raymond), was also arrested.

The SEC found that the defendants deceived investors, promising to allocate funds for the development of the cryptocurrency debit cards in collaboration with payment systems Visa and Mastercard. That in fact, Visa and Mastercard do not work with the project, it became known in October 2017.