The feds are investigating a cryptocurrency firm that duped investors out of $32 million. Centra Tech. Inc., a cryptocurrency that was promoted heavily by Floyd Mayweather Jr. and DJ Khaled, has been called a fraud.
Centra's co-founders, Sohrab "Sam" Sharma and Robert Farkas, promised untold riches to
suckers who invested in their the virtual coins ("virtual" means the coins aren't really in physical form).
Unfortunately for investors who listened to Khaled and Mayweather, the cryptocurrency they invested in is allegedly a Ponzi scheme according to the US Securities and Exchange Commission.
via VLadTV -- Sharma and Farkas are estimated to have duped contributors out of more than $32 million. In a statement that has been released to the press, the SEC notes that Centra Tech. relied on a sophisticated marketing campaign to sell its unregistered CTR Token.
"The defendants relied heavily on celebrity endorsements and social media to market their scheme," co-director of the SEC's Division of Enforcement, Steve Peikin, stated. The celebrities recognized for having touted the initiative are not accused of taking part in the scheme.
Photo by Andrew D. Bernstein