May 14, 2018 / 10:35 PM / 6 days ago

U.S. says Centra Tech co-founders indicted for cryptocurrency fraud

NEW YORK, May 14 (Reuters) - U.S. prosecutors on Monday announced the indictment of three co-founders of a cryptocurrency startup once promoted by the boxer Floyd Mayweather, accusing them of fraudulently raising more than $25 million from investors in an initial coin offering.

Sohrab “Sam” Sharma, Robert Farkas and Raymond Trapani, who co-founded Centra Tech Inc, were each charged with securities fraud, wire fraud and two conspiracy counts, according to an indictment filed with the U.S. District Court in Manhattan.

Prosecutors said the defendants, who live in Florida, misled investors in Centra tokens that they had formed partnerships with Visa Inc, MasterCard Inc and Delaware-based The Bancorp Inc to issue debit cards, among other allegations.

Lawyers for the three defendants could not be immediately reached for comment. (Reporting by Jonathan Stempel and Nathan Layne in New York Editing by James Dalgleish)

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