Centra, a cryptocurrency promoted by legendary boxer Floyd Mayweather, has received charges filed by the US Securities and Exchange Commission (SEC) – Alleging the token sale was a fraudulent securities offering. Additional charges were made against its co-founders – who allegedly engaged in fraudulent conduct and made material misstatements and omissions designed to deceive investors”
Based in Miami – Centra raised $32 million in an ICO last year.
The SEC alleges that Centra misled investors about having relationships with major financial partners – namely Visa and Mastercard – companies who have also filed legal charges against Centra.
The SEC complaint stated that both founders Sohrab Sharma and Robert Farkas were arrested on 1st of April, not long after company bank accounts had been emptied. According to reports, Farkas was trying to board a plane out of the US.
The SEC has warned that celebrity-backed ICO marketing campaigns could be illegal – in the event the necessary public disclosures are not made, as was the case in the Mayweather & centra advert.
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