Centra Tech, a cryptoccurency startup had been shut down by the US securities and Exchange Commission (SEC) charging the two co-founders with organising a fraudulent ICO (Initial Coin Offering).
Major cryptoccurency exchanges like Binance issued a warning against the company, informing users that its team is monitoring the situation carefully realeasing a 72 hour notice to its users until they will de-list the token.
“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”
The SEC is charging Sohrab Sharma and Robert Farkas with raising $32 mln in unregistered investments through a “CTR Token”, they were also charged with spreading false information regarding payment giants like Visa and Mastercard were backing the project with cards that could instantly convert cryptocurrencies into US dollars.
Sharma and Farkas promoted their fraudulent ICO through different means like paying Floyd Mayweather and DJ Khaled to support their projects on social media.
One thing is for sure that SEC is not kidding around and is about to take off the market all fraudulent obtained funds through unregistered ICO’s.
Get real time update about this post categories directly on your device, subscribe now.