SEC Cyber Unit Files Additional Charges Related To Unregistered ICO

The SEC filed additional fraud charges in connection with the recently shut down Centra Tech, Inc. ("Centra") initial coin offering. In an amended complaint, the SEC named an additional defendant and brought forth new allegations against Centra's co-founders.

After previously charging two of Centra's co-founders, Sohrab Sharma and Robert Farkas, the SEC also charged a third co-founder, Raymond Trapani, for his alleged role in the "scheme" to defraud investors. As previously covered, the SEC claimed that Centra issued "CTR tokens," which they sold through an unregistered ICO. Further, the SEC alleged that the defendants misled investors by claiming that funds would be used to create a system to facilitate easy conversion of cryptocurrency to fiat currency. Centra represented to investors that it would issue a "Centra Card," allowing cardholders to spend cryptocurrency in real time, and...