Centra Tech Review- Scam Broker Complaint
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CENTRA TECH Review by Fraud Brokers
Centra Tech was a crypto company that came up in 2017. The company was founded by Sam Sharma and Robert Farkas. The company had an initial coin offering(ICO) in 2017, which was backed by A-list celebrities which included undefeated boxer Floyd Mayweather Jr. and pop sensation DJ Khaled. With such huge names backing up the company when they went for an ICO it was still surprising to see that the company raised 25 million USD. In this piece we will see if Centra Tech was a scam and how so.
About Centra Tech
At its conception Centra Tech had two basic strategies that were working for it. The primary which probably attracted a lot of traders was the promise of a type of debit card that it would issue with Visa and MasterCard. This Debit card was supposed to facilitate transactions in cryptocurrency at normal establishments that accepted Visa and MasterCard payments. This would have been a great product for the market, and rightfully attracted a lot of interest. The other thing that seem to have been working for them was the big names that were backing the company. Apart from legendary boxers and upcoming pop stars, it also apparently had a CEO with 20 years of experience in Banking and Finance, who was an alumni of Harvard Business School. However the truth was contrastingly different.
The CEO, Michael Edwards was found to be a fictitious person with a stock image of a person as his only picture. And the supposedly great product that they were developing with Visa and MasterCard was also fictitious. This came to light after Visa denied any such partnerships for such a project. When the company went for ICO with its Centra Tokens they raised 25 million USD from unsuspecting investors. The company ran the scheme from a period of July to October 2017. It was in December 2017 that an investor filed a lawsuit against Centra Tech. The SEC followed suit and slammed a lawsuit on Centra Tech in April 2018 on the charges of having violated securities laws and raised 25 million USD. The SEC ordered the company to halt its coin offering. It was in May 2018 that the founders were indicted on federal charges of conspiracy. At different times in 2018 the value of the money that had been dwindled by Centra Tech was about 60 million dollars.
By October 2018, the FBI and the SEC had obtained judicial warrants for seizing assets that included 100,000 Ether units. Also Farkas had pleaded guilty to one count of securities fraud conspiracy and one count of wire fraud conspiracy by this time. And he is now facing up to 10 years in prison.
Centra Tech, though being in the limelight with celebrity endorsements and great claims of returns, turned out to be a ponzi scheme that scammed hundreds of thousands of investors. We warn traders against any such companies that are unregulated and do not have licences and hard facts to prove their offering and promised returns.