Jul 17, 2020 at 20:58 UTC
U.S. prosecutors have secured a guilty plea from Sohrab Sharma, a co-founder of the Centra Tech initial coin offering (ICO) fraud.
- As per the Friday plea, Sharma, 29, admitted that he and partners Raymond Trapani and Robert Farkas lied about their purportedly crypto-backed financial product’s partnerships, licenses and leadership as it ripped off investors for $25 million. He also forfeited 10,000 in ethereum ($2,329,200).
- The trio touted celebrity endorsements and flashy investor promises while promoting their partnership at the height of the 2017 ICO bubble. But their apparent success and big-name claims quickly caught investigators’ attention, and before long they faced a bevy of legal actions from regulators and investors alike.
- Sharma pleaded guilty to conspiracy to commit securities fraud, conspiracy to commit wire fraud and conspiracy to commit mail fraud.
- Farkas pleaded guilty in June, while Trapani did the same last year.