Founders of a cryptocurrency backed by Floyd Mayweather charged with fraud by SEC

Two founders of a cryptocurrency firm that was endorsed by champion boxer Floyd Mayweather have already been charged with carrying out a fraudulent initial coin providing (ICO) by the U.S. Securities and Exchange Commission (SEC).

The business in query is known as Centra and it raised $32 million by way of an ICO. An ICO is actually a procedure by which a firm can situation a brand new digital coin in exchange for cash. The coin has the possible to become utilized on a service provided by the firm or traded within the future.

Sohrab “Sam” Sharma and Robert Farkas, co-founders of Centra Tech. Inc., masterminded a fraudulent ICO in which Centra provided and sold unregistered investments via a “CTR Token,” the SEC alleged within a statement Monday.

The two folks claimed to offer you a debit card backed by Visa and Mastercard that permit men and women to convert cryptocurrency to U.S. dollars to commit it in shops. The SEC alleged that Centra had no connection with either business. Sharma and Farkas developed fake biographies of fictional executives and paid celebrities to tout the ICO on social media, the SEC claimed.

One particular of these celebrities, who was not named by the SEC, was boxer Floyd Mayweather. He posted a image of himself in September 2017 holding a Centra card.

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