Fraud rap for cryptocurrency promoted by DJ Khaled, Floyd Mayweather

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The agency charged that Sharma and Frakas masterminded a fraudulent ICO in which Centra offered and sold unregistered investments through a "CTR Token".

Through the complaint lodged in the Southern District of NY, the SEC is seeking permanent injunctions, the return of allegedly ill-gotten gains plus interest and penalties, and a ban on Sharma and Farkas serving as public company officers or directors and from participating in any offering of digital or other securities. Their names are Sohrab "Sam" Sharma and Robert Farkas - and they lied to investors about having relationships with Visa and Mastercard, which was the whole appeal of the fake platform (the idea was that you could pay anywhere with crypto on these cards that DJ Khaled and Mayweather had).

The complaint said that both Sharma and Farkas were arrested on April 1, after the company's bank accounts had been cleaned out; Farkas, incidentally, was attempting to board a flight leaving the country.

The SEC alleges that Sharma and Farka mislead investors with lofty promises to develop cutting edge technology through funds raised in the ICO. The SEC also says that Centra paid celebrities to talk about its ICO, the likes of which included Floyd Mayweather and DJ Khaled.

The company claimed that its digital currency would give investors access to a forthcoming crypto exchange, as well as a digital currency debit card affiliated with the MasterCard and Visa networks.

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The SEC charged Sohrab "Sam" Sharma and Robert Farkas, co-founders of Centra Tech Inc, with violating the anti-fraud and registration provisions of United States securities laws.

The complaint further states that Sharma and Farkas "engaged in an illegal unregistered securities offering and, in connection with the offering, engaged in fraudulent conduct and made material misstatements and omissions created to deceive investors in connection with the offer and sale of securities in the Centra I.C.O". The celebrities were not named in the indictment but prior publicity featured endorsements from boxing champion Floyd Mayweather. More to that the commission will also work to stop Sharma and Farkas from serving as public company officers or even participating as directors.

SEC Chairman Jay Clayton and Commodity Futures Trading Commission Chairman J. Christopher Giancarlo have worked together on several crackdowns, and have called on Congress for greater authority to police cryptocurrency exchanges.

Read the full story about how Centra's founders raised $32 million here.

Steve Peikin, Co-Director of the SEC's Division of Enforcement, took Centra and its co-founders practices to task in his press release saying.