Cryptocurrency News
Co-Founders of Centra Tech ICO Indicted For Securities Fraud
The founders of Centra Tech, an Initial Coin Offering based in Florida, have been indicted for securities fraud and other offenses. Apparently, they didn’t use the ICO proceeds to work on their project, but instead, they used them for other things.
- Two co-founders of Centra Tech indicted for securities fraud and other offenses
- The ICO is based in Florida and is aimed at creating crypto debit cards
The co-founders of the Initial Coin Offering (ICO) Centra Tech, have been indicted for securities fraud since they have allegedly used the funds gathered during the ICO for other purposes rather than their original intention. This is according to a recent article released by Nelson Rosario and Stephen Palley.
Centra Tech Founders Indicted For Securities Fraud
Centra Tech was an Initial Coin Offering from Florida that has celebrity endorsements from different figures such as DJ Khaled and Floyd Mayweather. The company aimed at using ICO funds to build a crypto debit card that couldn’t be finally released to the market. Now. the two co-founders of the platform have been indicted for securities fraud and other offenses.
This is according to the U.S. Attorney that is asking the judge to force the defendants to disclose whether they intend to assert a defense after the charges they have received in this indictment.
According to The Block, a recent filing in the case is a motion to compel that was filed by the U.S. Attorney’s office that is handling the case. The U.S. Securities and Exchange Commission (SEC) started an investigation of these two individuals in the last quarter of 2017, at the same time as the criminal investigation.
The defendants claim they relied on the advice of the attorney. As per the report released by The Block, the attorney had been disciplined previously by the NY state bar a month before. At the same time, this attorney is allegedly a former college student that gained prominence that promoted the 2016 Trump campaign.
At the moment, the U.S. attorney’s office is asking the judge to force the defendants to disclose if they plan to assert the defense. Moreover, they would also have to disclose anything relevant to the asserted defense.