Yesterday (2nd April 2018), The SEC released a statement announcing to the world that the 2 co-founders of the Centra Tech have been charged for operating a fraudulent Initial Coin Offering (ICO), one that is potentially the biggest scam ICO in history!

Biggest ever ICO scam?

The project raised over $32 Million during it’s ICO last year after making claims that the SEC have now discovered to be complete lies. Thousands of investors believed the claims and were sold by the project’s professional website.

The cryptocurrency token, CTR was listed and actively trading on many cryptocurrency exchange websites, even Binance which is now the world’s leading cryptocurrency exchange.

The price of the token today has dropped over 75% after Binance release statement considering the removal of the token from their exchange.

Fellow Binancians,

This is a special announcement about the high risk associated with the CTR token in light of the information released earlier today relating to the controversial and fraudulent acts by members associated with the Centra Tech team.

We will continue to seek more information and monitor the situation closely, and may take further action including delisting. Should we choose to delist the token, a notice period of no less than 72 hours will be provided.

Thanks for your support!

Binance Team

Why is Centra Tech in the wrong?

After thorough investigation from the SEC, the founders have been called out on a number of false claims made during the public token sale. The ICO scammed users out of their money by lying about partnerships and team members. They raised over $32 million meaning it is one of the biggest scam ICO’s ever!

The project was sold on the basis that the money would be invested in creating financial services products. One of those was to be a debit card which they claimed to be supported by Visa & Mastercard. The SEC have now proved this relationship be completely fabricated.

It’s also alleged that the founders created impressive false bio’s on the website of fake team members, claiming they attended prominent universities and had past experience as high ranking executives of well known companies.

Biggest ICO Scam

Together with a very well executed marketing campaign which included celebrity endorsements from Floyd Mayweather Jr and DJ Khaled, the team managed to convince thousands of ICO investors to part with over $32 Million USD!

The 2 co-founders, Sohrab “Sam” Sharma and Robert Farkas have now been arrested, with Farka’s arrest being made as he was attempting to leave the country!

The SEC said:

“We allege that Centra sold investors on the promise of new digital technologies by using a sophisticated marketing campaign to spin a web of lies about their supposed partnerships with legitimate businesses,” said Stephanie Avakian, Co-Director of the SEC’s Division of Enforcement.  “As the complaint alleges, these and other claims were simply false.”

Read the full SEC press release on the matter

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