Securing $32 million through crowdfunding via an ICO, Centra was propelled by endorsements from celebrities like Mayweather. Sharma and Farkas, the minds behind Centra Tech., Inc., falsely claimed their debit card was supported by Visa and Mastercard, allowing users to convert digital currencies into U.S. dollars for everyday use. However, the SEC contends that Visas and Mastercards were never involved. The biographies of the company’s executives were fabricated by Sharma and Farkas to give their endeavor more credibility. Celebrity endorsements on social media, allegedly purchased by Centra, played a role in promoting the ICO, which was purportedly fraudulent and involved selling unregistered investments through the “CTR token.”
According to Stephanie Avakian, co-director of the Division of Enforcement at the SEC, “The agency alleges that investors were enticed by Centra with promises of groundbreaking digital technologies, presented through an elaborate marketing strategy that fabricated connections with legitimate businesses. The complaint highlights these and other statements as outright fabrications.”
In the federal court located in the Southern District of New York, this complaint has been filed, accusing the co-founders of breaching anti-fraud laws alongside the securities laws’ registration mandates. It aims for permanent bans, alongside restitution of purportedly misappropriated funds, as well as interest and punitive fees. Additionally, the duo faces a prohibition on any future involvement in ICOs or securities offerings. The SEC has previously targeted similar enterprises, including AriseBank earlier this year.
Engaging in the world of cryptocurrencies and Initial Coin Offerings (“ICOs”) carries significant risks and remains speculative, and neither the author nor recommends investing in them. Each individual’s circumstances differ, necessitating consultation with a qualified expert before making any financial decisions. provides no assurances regarding the precision or relevance of the data shared within this article. At the time of penning this article, Bitcoin and Ripple were part of the author’s holdings.
Regarding the Centra situation, Floyd Mayweather remains silent.