Another co-founder of a crypto startup arrested in the US

Another Crypto Start Up Co Founder Arrested

A few weeks back two founders of the cryptocurrency start-up, Centra which is endorsed by Floyd Mayweather Jr, were arrested and charged by The Department of Justice. Earlier on Friday, April 20th another founder was reportedly arrested for allegedly committing frauds related to the start-up’s token sale.

On Friday, April 20th, The U.S. Attorney’s Office for the Southern District of New York revealed that Ray Trapani a co-founder of Centra has been arrested and charged with fraudulent cases connected with the start-ups token sale. According to the report, Trapani has been charged with one count of conspiracy to commit securities fraud, and one count of conspiracy to commit wire fraud.

The token sale of Centra attracted a huge audience as it was reportedly endorsed by the boxing icon with a record of 50-0, Floyd ‘Money’ Mayweather, Jr. Significantly he is not the only boxing idol who has been involved in the cryptocurrency world, as his former opponent and Philippines boxing legend Manny Pacquiao has also been promoting a cryptocurrency.

At the beginning of this month (March 2018), fellow Centra founders Sohrab Sharma and Robert Farkas were given authorization by the U.S. government, with actions by both the Securities and Exchange Commission (SEC) and also the DOJ.

Their startup initially made headlines back in September 2017 when the boxing champ promoted their ICO that is connected with a credit card and supported by cryptocurrencies, on his social media account. Ensuing reports provide reasons to feel ambiguous about the claims made by Centra, especially the dispute that the firm had working relations with Visa and Mastercard.

Deputy U.S. Attorney Robert Khuzami  revealed via a statement, which reads:

“As alleged, Raymond Trapani plotted with his co-respondents to attract investors with false claims about their product and about connections they had with credible financial institutions. While it is legal to invest in cryptocurrencies, misleading investors by making false claims is not.”

According to the Justice Department, a separate case has been filed by the SEC against Trapani.

About the author


Joel Picardo

Joel Picardo the Manager at TokenMantra has been in the Cryptocurrency space for the last 2 years and got to know about it through his mentor Arvind Borhade (CTO at U.CASH).He is also currently managing the operations at UCASH India. He is an individual filled with optimism and destined to be a billionaire in the future. His work ethics and dedication are second to none. He believes that Bitcoin and Blockchain would create many peer to peer decentralized originations.

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