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Cryptocurrency company founders deceived investors for $ 25 million
Scammers tried to deceive investors by attributing other people’s merits
SEC reveals another fraudulent scheme
Scammers will pay a fine and get a prison sentence
Another high-profile case in the USA related to the sale of coins during the ICO.
Three scammers organized their own company Centra Tech Inc and announced the development of a unique banking product that allows you to pay with digital currencies. Thus, they wanted to convince investors to provide funding of $ 25 million..
The scam failed
Three organizers of a criminal cryptocurrency farm tried to convince investors to allocate investments in the amount of $ 25 million. For this, Robert Farkas, Sohrab Sharma and Raymond Trapani faked the ICO website and attributed non-existent team members. In particular, the scammers stated that they have developed an innovative banking product – a debit card that allows you to use cryptocurrencies as a means of payment and pay for goods and services through Visa and Mastercard payment systems..
To prove their professionalism, the crime trio indicated that the executive director is someone who was educated at Harvard, and the system has already proven its effectiveness..
Despite the very favorable presentation of information, American law enforcement officers suspected something was wrong and checked the company Centra Tech Inc.
After the check, the organizers were arrested and confessed that they deliberately misled investors in order to get large investments from them..
Now the court is ready to issue a sentence of imprisonment for a term of 70 to 87 months, as well as a fine of $ 250,000.
The criminals had previously set up their luxury car rental company and quickly attracted customers through an aggressive social media campaign involving famous personalities. However, the cryptocurrency scam failed.
Scammers choose cryptocurrencies
More recently, BeInCrypto talked about another scam case. The US Securities Commission has blocked the accounts of a fraudulent company for $ 12 million. The SEC has filed charges against three business organizers – Utah resident Daniel F. Putnam, as well as lawyers Angel A. Rodriguez from Utah and Jean Paul Ramirez Rico from Colombia. All three are in the case of misappropriation and use of investor funds.
As stated in the SEC’s explanatory memorandum, Putnam organized a fraudulent business platform Modern Money Team, which provided several services: trading options and currencies in the Forex market, as well as access to cryptocurrency mining. For participation in the business, the company took money from users, and also attracted investments for the purchase of mining equipment for its own mining pool. However, according to SEC officials, Putnam used more than $ 100,000 from his investors for condominiums and $ 33,000 for personal purchases..
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