$32 Million Cryptocurrency Debit card scam in ICO scheme revealed

Cryptocurrency has been on rounds from the end of last year and people are trying to mint money by organizing various schemes and luring people towards it trying to get investments and frauding them at the end. This scheme was none other which made $32 million dollars in the name of Cryptocurrency debit cards and then vanished. The U.S. Government has previously made promises that it will take strict action and impose heavy fines on people for scamming through coin offering schemes. This Friday, SEC imposed charges and heavy fines on Raymond Trapani, one of the three co-founders of Centra Tech Inc. which raised investments from people on the idea of Cryptocurrency debit cards. Last year, Centra Tech Inc. raised nearly $32 million for cryptocurrency debit cards through ICO which was endorsed by stars like boxer Floyd Mayweather and DJ Khaled which eventually lured the people into believing that the scheme was true. The other two founders, Robert Farkas and Sam Sharma were also arrested and charged earlier in April.

SEC Cyber Unit chief and Robert Cohen and the director of Division of Enforcement Stephanie Avakian said that the co-founders went to a great extent in order to make people trust them and make them believe that they were successful in creating a new technology. They brought in investors by using sophisticated marketing skills bring in capitals and lying about their partnerships with business giants. The chief also adviced the investors that they should be careful in investing their time and money in digital assets and especially when they are marketed with high demands and schemes which are too good to be true. Trapani has been named as the mastermind behind this whole fraudulent case by luring investors and making fake bio-data of the founders and manipulating the price of Centra tokens. Robert Farkas was also arrested at the airport when he almost escaped the US.

In the documents of the SEC, a particular fraud person was caught red-handed. One of the co-founders conversations was revealed where Sharma said to the other co-founders that, “We got to remove all the references from major banks and blame it all on the freelancers”. They tried listing their CTR tokens on various coin exchange platforms with fake credentials on which Trapani texted Sam to cook up fake documents to which Sam replied that, “Don’t text me that shit. Delete”.

Last year in November, Business Insider reported several fake business profiles but discarded it saying that they were made mistakenly by freelancers. The U.S. also imposed fines on Trapani on criminal securities and wire fraud charges. Four chargers were imposed on him and at least three of them carry a maximum sentence of 20 years. All the co-founders were charged on the criminal basis and were arrested. Robert Khuzami, Deputy U.S. Attorney said that “Investing in virtual currency is legal but lying to lure investors is not!”.

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