The Commission on securities and exchange Commission (SEC) has suspended the ICO project Centra and arrested 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. The 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 became known in October 2017.
In addition, the company’s executives have created and promoted a fake team, whitepaper and other untrue information about the project. To advertising the project in September 2017, they have attracted professional boxer Floyd Mayweather (Floyd Mayweather) and actively used social media and celebrities to attract new investors.
The SEC intends to recover from the Charm and Farkas all collected their $32 million as well as penalties and interest and prevent them in the future to hold any leadership positions and to participate in the distribution of securities.
In response to the news of the Centra rate dipped by 58,85% and is $0,126368 for the token.
We will remind that in December of 2017 against Centra Tech has been filed a class action lawsuit in which the company was accused of the offer of unregistered securities. However, the SEC brought fraud on the market of cryptocurrencies and the priorities of the ICO 2018 and conducts large-scale trial, which has sent subpoenas to at least 80 cryptomeria and hedge funds.