The Securities and Exchange Commission appears to be keeping a close eye on financial services startups, with today’s news that the agency has settled cases with two robo-advisory companies over allegations that they misled investors. Wealthfront Advisers, one of the darlings of the fintech investment sector with $11 billion under management and roughly $200 million […]
View More SEC slaps startups Wealthfront and Hedgeable with fines for making false disclosuresCategory: Floyd Mayweather
Floyd Mayweather and DJ Khaled hit with massive fines for pumping crypto ICOs
Well that certainly backfired.
Professional boxer Floyd Mayweather and music producer DJ Khaled are on the receiving end of substantial fines today. The SEC announced the two would-be cryptocurrency influencers failed to disclose that their sup…
Founder of cryptocurrency debit card faces new fraud charges for $32 million ICO scheme
The U.S. government is following through on its promise to crack down on initial coin offering scams. On Friday, the SEC announced charges against Raymond Trapani, the third co-founder of Centra Tech Inc., which raised $32 million for a cryptocurrency debit card last year through a flashy ICO endorsed by DJ Khaled and boxer Floyd […]
View More Founder of cryptocurrency debit card faces new fraud charges for $32 million ICO schemeFounders of a DJ Khaled-endorsed ICO have been charged with fraud
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The two co-founders of Centra, a cryptocurrency initial coin offering (ICO), that was endorsed by musician DJ Khaled and boxer Floyd Mayweather, have been arrested and charged with fraud.
The U.S. Securities and Exchange Commission (SEC) alleges that Sohrab “Sam” Sharma and Robert Farkas “masterminded a fraudulent ICO in which Centra offered and sold unregistered investments through a ‘CTR Token.'”
SEE ALSO: Google to ban cryptocurrency ads in June
The charges boil down to Sharma and Farkas making promises to investors that were completely unfounded, including offering a debit card backed by Visa and MasterCard, even though they had no relationship with either company. Furthermore the SEC alleges that the two “created fictional executives with impressive biographies, posted false or misleading marketing materials to Centra’s website, and paid celebrities to tout the ICO on social media.” Read more…
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View More Founders of a DJ Khaled-endorsed ICO have been charged with fraud