The United States, Miami-based company named Centra Tech’s Co-founder “Sam Sharma” has been sentenced to eight years of prison for conducting an illegal Initial Coin Offering that took $25 million of investors assets.
Back in July 2017, the following person and his team held an ICO (Initial Coin Offering). The investors who had believed Centra Tech’s claims helped the firm to raise more than $25 million in the Initial Coin Offering. What is an Initial Coin Offering actually?
It is an offering a new coin to the cryptocurrency industry with a vision and mission. The main goal of an ICO is to gain community to increase the number of sales in the coin offering. If you’re interested in researching an ICO, check out my previous article about ICOs. But the fact is, every ICO is not completely legit and even it is legit, less likely to be successful. It depends on the quality of the project.
However, as long as the company offers cryptocurrency-based financial products, the investors must have been invested like there’s no doubt about that.
This is not the first time the company pled guilty. According to a report by Coindesk, Sam Sharma previously conspired to commit securities fraud, wire fraud, and email fraud in connection with his co-conspirators’ use of material misrepresentations and omissions to solicit investors to purchase securities.
One of the co-founders of the same company, “Robert Farkas” has been also sentenced to one year and one day in prison for conducting the following Initial Coin Offering in December 2020.
There is some bad news happening among the good news in the cryptocurrency industry. While this alt season happening around, what do you think of this news?