Sohrab Sharma, ICO Fraud Scheme, New York 2024
A leading co-founder of a cryptocurrency company has been sentenced to 8 years in prison for an ICO fraud scheme that duped victims out of more than $25 million.
Sohrab Sharma, a/k/a 'Sam Sharma', was sentenced in Manhattan federal court by U.S. District Judge Lorna G. Schofield.
According to the U.S. Attorney's Office, Sharma and his co-conspirators used material misrepresentations and omissions to solicit investors to purchase securities in the form of digital tokens issued by Centra Tech, a Miami-based company he co-founded.
Between July 30, 2017, and October 5, 2017, Sharma and his co-defendants solicited investors to purchase unregistered securities, including through a so-called 'initial coin offering' or 'ICO.'
Sharma and his co-conspirators represented that Centra Tech had an experienced executive team, formed partnerships with Bancorp, Visa, and Mastercard to issue Centra Cards licensed by Visa or Mastercard, and had money transmitter and other licenses in 38 states.
However, these claims were false, and the purported CEO 'Michael Edwards' and another supposed member of Centra Tech's executive team were fictional people fabricated to dupe investors.
Sharma previously pled guilty to conspiring to commit securities fraud, wire fraud, and mail fraud. He was sentenced to 8 years in prison for his role in the scheme.
In 2018, the U.S. Attorney's Office and the Federal Bureau of Investigation seized 100,000 Ether units, consisting of digital funds raised from victims who purchased digital tokens.
Defendant: Sohrab Sharma, a/k/a 'Sam Sharma'
Criminal Charges: Conspiring to commit securities fraud, wire fraud, and mail fraud
City and State: New York
Date: July 2017 (approximately) to October 2017
Sentence: 8 years in prison
Dollar Amount: $25 million (plus)
Key Facts
- State: New York
- Category: Cybercrime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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