Mayweather-Promoted ICO to be Halt by SEC

Centra Tech is accused in "organizing a fraudulent ICO"
03 April 2018   584

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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Pantera Capital to Intend to Raise $175M for Crypto Fund

Whether the firm can achieve its funding goal is still unclear
16 August 2018   192

Pantera Capital intends to raise up to $ 175 million for its third venture fund, focused on the blockchain and cryptocurrencies, which marks significant progress against the background of the company's other two funds: the assets of the first of them are $ 13 million, the second - $ 25 million. This is reported by TechCrunch.

As reported, company's partner Paul Veradittakit says the target amount is a “function of how fast the space is moving, the talent coming in, the opportunities, and the sizing of rounds. With more interesting later-stage investments [on our radar], too, we want to be flexible and able to move with the market.”

Whether the firm can achieve its funding goal is still unclear. According to documents recently sent to the US Securities and Exchange Commission (SEC), it has already managed to raise more than $ 71 million with the participation of 90 investors. Veradittakit calls this event "the closing of the first transaction".

One of the company's new funds, which opened last year, has a hedge fund structure and focuses exclusively on the ICO. The founder of the company Dan Morehead said earlier that Pantera takes part in the first stages of such campaigns, "basically getting a discount to the ICO price by getting in early, when it’s just a team and a white paper."

The second fund of the company is engaged in investing in bitcoin and has managed to serve a large number of investors during its existence. According to Morhed's calculations, the fund, launched 5 years ago, demonstrated a return of 10 136%.

The last fund Pantera invests in cryptocurrencies, which are already traded on the exchanges. It uses machine learning for algorithmic investment and takes into account the views of the company's management when making investment decisions.