{"id":255394,"date":"2020-03-27T22:44:08","date_gmt":"2020-03-28T02:44:08","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=255394"},"modified":"2020-03-27T22:44:08","modified_gmt":"2020-03-28T02:44:08","slug":"trial-of-centra-tech-founders-moved-to-september","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/trial-of-centra-tech-founders-moved-to-september","title":{"rendered":"Trial of Centra Tech Founders Moved to September"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">Centra Tech, the company whose Initial Coin Offering (ICO) was promoted by boxing legend Floyd Mayweather Jr., will have its day in court later this year.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Earlier this week, a district court announced in a\u00a0<\/span><a class=\"_e75a791d-denali-editor-page-rtfLink\" href=\"https:\/\/www.law360.com\/articles\/1257458\/attachments\/0\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-preserver-spaces=\"true\">press release<\/span><\/a><span data-preserver-spaces=\"true\"> that the trial of the project\u2019s operators, Sohrab Sharma and Robert Farkas, has now been moved from April 27 to September 3, 2020.\u00a0<\/span><\/p>\n<h2><strong><span data-preserver-spaces=\"true\">Coronavirus Concerns Push the Date Into Fall\u00a0<\/span><\/strong><\/h2>\n<p><span data-preserver-spaces=\"true\">The move is due to coronavirus concerns. Several dates across the country have been forced to limit activities as much as possible, and District Judge Lorna Schofield is hoping to minimize risks at this time. However, the judge also pointed out that November 12 will be a tentative back up trial date, as she explained that possible rescheduling could be on the cards as a result of the virus.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The two suspects were arrested back in May 2018 with Raymond Trapani, Centra Tech\u2019s co-founder. At the time, the Federal Bureau of Investigations (FBI) had charged them with conspiracy to commit wire fraud and the commissioning of illegal securities through their ICO.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">They were also found to have made substantial misrepresentations and exclusions in their official filing, as Centra Tech itself made some false claims about some of its partnerships with major companies to swindle investors. Apart from the misrepresentations, they were also found to have created fake identities and forged credentials for their company to make it look legitimate.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In an investigation, the investigative agency found that they had up to 91,000 ETH tokens \u2013 valued at over $60 million at the time.\u00a0\u00a0<\/span><\/p>\n<h2><strong><span data-preserver-spaces=\"true\">Celebrities and Their History with Fake ICOs<\/span><\/strong><\/h2>\n<p><span data-preserver-spaces=\"true\">Mayweather wasn\u2019t the only person involved with the ICO \u2013 there was also <a href=\"https:\/\/insidebitcoins.com\/news\/sec-charges-dj-khaled-and-floyd-mayweather-with-unlawfully-touting-icos\/198558\">DJ Khaled<\/a>, the famous hip hop artist, and disk jockey. Both men were sued by Centra Tech\u2019s investors after the firm\u2019s fraudulent nature was revealed, with many investors explaining that they were spurred to make investments after seeing their social media posts.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Mayweather was cited for having promoted Centra Tech and its token sale on Twitter, with a post of him holding the firm\u2019s debit card and a caption of him endorsing their ICO.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The judge eventually dropped the case against both of them, explaining that the plaintiffs hadn\u2019t shown enough proof to tie their investment actions to the celebrities\u2019 posts. The judge also found that two of the plaintiffs had made their investments before Khaled or Mayweather made any post for the firm via their social media.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Theirs was one of the first cases of celebrities being roped into fraudulent ICOs. Since then, several other notable names have been charged with advertising for these fraudulent schemes.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Earlier this month, <a href=\"https:\/\/insidebitcoins.com\/news\/sec-clears-u-s-rapper-t-i-of-fraud-charges-in-connection-with-flik-tokens\/253224\">Tip \u201cTI\u201d Harris<\/a>, another hip hop artist, was let off the hook for the work he did with FLiK. T.I and comedian Kevin Hart were sued by investors of the fraudulent scheme back in 2018, as the plaintiffs claimed to have lost a total of $1.3 million to the firm. Harris was eventually charged with state securities fraud.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, the U.S. Court of Northern Georgia explained in a filing that while the rapper had promoted the project, he hadn\u2019t made any material misrepresentations of the token\u2019s value.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"fin-excerpt\">Centra Tech, the company whose Initial Coin Offering (ICO) was promoted by boxing legend Floyd Mayweather Jr., will have its day in court later this <a class=\"read-more-link\" href=\"https:\/\/insidebitcoins.com\/news\/trial-of-centra-tech-founders-moved-to-september\" title=\"Trial of Centra Tech Founders Moved to September\">[&#8230;]<\/a><\/div>","protected":false},"author":1770,"featured_media":255395,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[7596],"tags":[10560,10562,10559,10561,10453],"class_list":["post-255394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-centra-tech","tag-dj-khaled","tag-floyd-mayweather","tag-kevin-hard","tag-t-i"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.8 (Yoast SEO v23.8) - 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