Cryptocurrency Firm Founders Indicted on Federal Fraud Charges

(Bloomberg) -- The co-founders of a cryptocurrency firm that raised money on social media with the help of celebrities were indicted Monday on charges they duped investors into committing millions of dollars in digital funds by lying about an initial coin offering.

Sohrab Sharma, Raymond Trapani and Robert Farkas, the founders of Centra Tech Inc., were previously charged with fraud and conspiracy, and their indictment moves the case closer to a trial. Prosecutors say they lied about their product and the relationships they had with financial institutions.

Among their alleged scams: falsely claiming to have a chief executive officer.

Third Centra Tech Founder Faces Charges Over Coin Offering

©2018 Bloomberg L.P.