In this article, I will explore the Centra Tech ICO and how it may have been a scam.
The centra tech wiki is a website that contains information about the company and its ICO. It also includes links to other cryptocurrency related websites.
Isn’t it obvious that a crypto project is worth investing in when Floyd Mayweather and DJ Khaled support it?
The Centra Tech ICO was a ruse that pretended to be the golden boy of cryptocurrency. Perhaps the celebs were duped – or perhaps they were conned themselves. In any case, one thing is certain: large claims and loud endorsements are insufficient to make a coin successful.
It must be performing a beneficial function.
The Blitzkrieg of Marketing
The bitcoin community began hearing rumors about a new cryptocurrency in the summer of 2017. Floyd Mayweather and DJ Khaled were the ones chatting, and the coin was Centra. People started to sit up and take attention as a result.
For most people, the real pictures of celebrities posing with the Centra crypto cards were what clinched it. According to reports, the nascent cryptocurrency has already formed agreements with MasterCard and Visa.
Talk about lofty goals.
The promise was that the card would let users to spend their cryptocurrency at any retailer that accepted Visa or MasterCard. Of course, this implies everywhere. There’s no need to waste time on Coinbase converting your digital assets to cash. There’s no need to wait for that trendy café to start accepting Bitcoin. Centra Tech promised to greatly improve the usefulness of all cryptocurrencies.
“Now you can call myself Floyd ‘Crypto’ Mayweather.”
Indeed, the renowned boxer could be seen carrying what looked to be the Centra card itself in a photo he posted. “Spending bitcoins, ethereum, and other kinds of cryptocurrencies in Beverly Hill…”, says the accompanying text.
This isn’t the first time this image has surfaced. The picture was frequently shared on Floyd ‘Money’ Mayweather’s social media channels throughout the month. Posts aggressively promoting the Centra Tech ICO continued to emerge on social media platforms like as Facebook, Instagram, and Twitter.
“This is a Game Changer in this situation.” DJ Khaled –
Mayweather wasn’t the only major person involved in the phony coin’s marketing. The fraud also included DJ Khaled, a well-known song producer and radio personality.
On his social media accounts, Khaled was also spotted carrying the fabled Centra Card. For good measure, he also encourages his fans to purchase Centra’s CTR tokens.
Many individuals were alarmed by this brazen promotion of the Centra Tech ICO. The comments section of these now-deleted articles was full with remarks casting doubt on the project’s legitimacy and the motivations of the celebrities. However, there will always be some who believe the falsehood.
The Initial Coin Offering (Scam)
On September 19, 2017, the ‘game changer’ Token sale went live. It lasted precisely one week, allowing unsuspecting investors plenty of opportunity to be duped by the fraud. Floyd Mayweather, our crypto-enthusiast boxer, was on hand to lure investors into the trap.
Floyd suddenly seemed uninterested in discussing boxing. It was all about the Centra Tech ICO instead.
This viral article immediately used his celebrity and medals to encourage others to purchase Centra’s token. He becomes even more direct in a since-deleted Facebook post, stating, “As usual, I’m going to win big with this one!”
The ICO was, without a doubt, a huge success. The Ponzi scam had made a total of $32 million by the time the ICO closed its doors.
Getting to the Bottom of the Story
There was a rush of interest in the folks behind this amazing new product after the spectacularly successful token sale. Skeptics publicly questioned the company’s capacity to deliver and began asking pointed questions.
However, Centra Tech’s three co-founders, Sorhab Sharma, Raymond Trapani, and Robert Farkas, had buried their tracks as well. The executives in charge of the project had excellent track records, according to their website. To reassure investors, it highlighted their prior roles and bragged of their “decades of business expertise.”
Furthermore, the three claimed to have had money transmitter licenses from 38 different states in the United States. Many of the skeptics were silenced as a result of this.
However, their celebrity had grown to be a little too much for them to manage.
Two months following the ICO, the firm received a cease-and-desist letter from Visa, which categorically rejected any collaboration with the company. MasterCard chose to weigh in as well, denying that it was involved in any agreement with Centra Tech. Centra Tech’s days were numbered, to say the least.
Meanwhile, several devoted people tried to check the credentials of the Centra Tech executives and discovered that no such executives existed. The biographies and profiles were all made up.
And it came out that the two celebrities were involved in the scam, having been paid to endorse and promote the ICO. Trapani went so far as to say that the two were not just marketers, but also official brand ambassadors and management partners of the company.
The investors were on the verge of losing their minds. Many people tried to contact the business and request a refund. Their attempts, however, were greeted with a stony silence.
The website had been taken down, the official social media accounts had been deleted, and the creators had vanished. It was obvious that the crooks had called it quits for good.
There was nothing the deceived investors could do, and it seemed that this event would follow in the footsteps of the hundreds of previous fraudulent ICOs that had defrauded bitcoin investors. But then the Securities and Exchange Commission (SEC) intervened.
The Watchdog has arrived.
The Securities and Exchange Commission (SEC) of the United States is the primary regulator of financial markets. While cryptocurrencies are not yet regulated or included in the conventional stock market, they are a viable investment option. That implies they are still bound by the commission’s regulations.
Which turned out to be a blessing in disguise.
While the majority of crypto-related frauds are perpetrated in poor Asian nations with weak regulatory systems (for example, Pincoin), Centra had mostly targeted Americans and had unintentionally attracted more attention than they could manage.
As a consequence, the commission became aware of their deception and took action against them. The three creators have been charged with misrepresenting facts and “orchestrating a fraudulent initial coin offering (ICO)” in the Southern District of New York.
The police acted quickly, apprehending the ponzi scheme’s masterminds before they could flee the country. Even yet, Farkas was arrested as he was ready to board a flight that would take him out of the country.
While Floyd Mayweather and DJ Khaled were not mentioned in the SEC filing, a separate class action lawsuit has been launched against the two superstars for their roles in the fraud. The defrauded investors are suing the two Centra Tech ICO endorsers for fraud, seeking a full return of their funds as well as damages for breach of trust.
Will they ever be able to reclaim their funds?
It’s difficult, to say the least.
It’s not as if there aren’t any assets with which to repay the investors. The masterminds of the fraud were apprehended by the Federal Bureau of Investigation, who seized approximately 91,000 ETH coins.
Ethereum was still running strong at the moment, and the hoard totaled little over $67 million. You read it correctly: $67 million. Enough to cover the $32 million outstanding obligation twice over and then have a few million left over.
That isn’t the case any more. While the lawsuit was still being contested, the price of the coin plummeted, as it often does in the crypto realm (the Mt Gox scandal comes to mind). After being pummeled by this year’s bad market, the recovered assets are now only worth $18 million.
So, yes, that’s a…
Investors, on the other hand, would welcome a return of some of their hard-earned cash. The sooner you start, the better. However, if market indicators are correct, this fortune will be reduced to a smidgeon as the lawsuit goes on.
However, the opposite is also true: it is possible that the price may rise, in which case the dissatisfied investors would benefit from the situation.
The case against the celebrities, on the other hand, is unlikely to succeed. The two have already distanced themselves from their previous comments, deleting the damning social media postings. If the matter is brought up in court, they may simply claim ignorance of the scheme’s true nature. As a result, substantial sanctions (financial or otherwise) are unlikely to be imposed on Floyd Mayweather or DJ Khaled.
However, most investors would be grateful to get even a portion of their money back from the fraud. All eyes are on the SEC now as it works to complete the process of prosecuting the offenders and returning the money to the victims of the scam.
Initial Coin Offerings (ICOs) are like to walking through a minefield. While there are some hidden gems there, many are siren calls designed to lure unwary investors in and drain their funds.
Big promises and implausible claims should not be used to entice you. Before acting on a project, always do your own due diligence. It may be difficult to tell truth from fiction at times, so stick to trustworthy websites you can trust and constantly question the information you’re provided.
Finally, you should never allow a celebrity to influence your decisions. While it may seem to give legitimacy to the idea on the surface, all it really implies is that the founders have the financial resources to spend heavily on marketing.
Despite the fact that the Centra Tech event had a good conclusion, not all frauds do. To avoid detection, many operate from countries with weak legal systems and hide behind a web of dubious businesses and fake identities.
The crypto ICO industry is mostly unknown terrain, which may be hazardous, misleading, and lucrative at times.
Keep an eye out.[ratings]
DISCLAIMER: The activity of the cryptoassets discussed in this paper is uncontrolled. This post is not intended to provide financial advice. Always do independent research.
The centra tech sentencing is a sentence that was given to the founders of Centra Tech, who were found guilty for running an ICO scam.
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