Mayweather-Promoted ICO to be Halt by SEC

Centra Tech is accused in "organizing a fraudulent ICO"
03 April 2018   740

The Securities and Exchange Commission (SEC) suspended the ICO of the cryptocurrency project called Centra Tech, which was once advertised by the multiple world boxing champion Floyd Mayweather. The office accuses the startup of "organizing a fraudulent ICO", the report said.

Co-founders of Centra Tech Sohrab Sharm and Robert Farkas also accuse the SEC of appropriating $ 32 million "obtained through the sale of unregistered securities."

According to the SEC, the start-up promised to send funds received during the ICO to "develop financial products supported by Visa and Mastercard", but in reality Centra Tech did not have any working relationship with these companies. In addition, according to the Commission, Sharma and Farkas were engaged in the creation and dissemination of "false advertising materials, including information about fictitious officials."

As we allege, the defendants relied heavily on celebrity endorsements and social media to market their scheme. Endorsements and glossy marketing materials are no substitute for the SEC's registration and disclosure requirements as well as diligence by investors.

Steve Peikin

Co-director, SEC Division of Enforcement

The SEC documents also state that the founders of Centra Tech paid various celebrities for the promotion of the ICO, including Floyd Mayweather, who supported the project in September 2017. However, the corresponding post in Instagram has already been deleted.

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Pure Bit to Refund Investors' Money

Another cryptocurrency scam storu may have happy ending
15 November 2018   155

The founders of the South Korean exchange Pure Bit, who were suspected of stealing investors' money, announced the return of funds.

According to the local edition of BlockchainROK, representatives of the exchange have already partially returned the money to some users and pledged to return all other funds.

On November 4, the exchange team launched the ICO with the goal of collecting about $ 30 million to create a crypto exchange. However, on November 9, Pure Bit closed the site, said goodbye to its investors and removed everyone from the group in the KakaoTalk messenger. Also, the founders of the exchange withdrew funds from the account that was used for ICO.

According to CCN, one of the issues traced the Ethereum address of the exchange and asked Upbit to block the account and freeze the funds. Upbit fulfilled this request.

This is Pure Bit. First off, I would like to apologize to everyone that was affected by the ICO. Since November 5, I raked in 16,000 ETH and did not open a crypto exchange as promised. I kicked out everyone in our social media chat groups and disappeared without any message. I negatively affected investors in the project psychologically and financially. I made an unforgivable mistake that cannot be turned around, blinded by money. It has been less than a day and I have already started to suffer from guilt. Although it cannot be compared with the hardship faced by the investors, I also felt significant guilt. I sincerely apologize to all of the investors in the ICO who were affected by the operation.

CEO of Pure Bit

The founder of Pure Bit also notified that he would return ETH 16,000 to depositors without taking into account the payment of services to a third-party company that organized ICO.