Centra Tech Co-Founder Sentenced One-Year in Prison Over $25 Million ICO Scam

Robert Farkas, 34, the co-founder of the cryptocurrency firm Centra Tech was sentenced to a year in prison on Tuesday by US District Judge Lorna G. Schofield in Manhattan.

Farkas pleaded guilty to tricking investors of over $25 million in an investment scam that was promoted by the likes of Floyd Mayweather and musician DJ Khaled, who settled their own charges with the SEC for failing to disclose that they had been paid to promote the project.

The other two co-founders have also pleaded guilty to their roles in the scam.

The guilty parties solicited investors in 2018 to commit frauds to an initial coin offering (ICO) for its “Centra Tokens” by falsely claiming that they have developed a debit card that will allow the users to make purchases with digital currency at businesses accepting Mastercard and Visa, said prosecutors.

In other news, the Public Prosecutor’s Office of the Argentine city of Córdoba indicted 12 people in connection with the Onecoin Ponzi scheme last week.

One of the biggest scams in crypto history, this Bulgaria-based project netted about $4 billion.

The local police carried out multiple raids and arrested eight people over the years in different countries. Onecoin founder Ruja Ignatova, who was also indicated, is still at large.

Read Original/a>
Author: AnTy

Shark Tank’s Robert Herjavec: Not A Big Believer in Gold; BTC’s Price Will ‘Quintuple’ Long-Term

  • “I’m a big believer in bitcoin, electronic payments in the future,” – Robert Herjavec, founder and CEO of Herjavec Group
  • The minute you have a large institutional company getting behind it then that world will change

According to Shark Tank’s Robert Herjavec, founder and CEO of Herjavec Group, Bitcoin is the future method of payment that will be accepted by most consumers in the coming years, due to its ease of use. Add the price of the world’s leading cryptocurrency will likely skyrocket. Herjavec told Kitco News,

“I’m a big believer in bitcoin, electronic payments in the future but I think we’re a long way away from that.”

While talking about the impact of coronavirus on the stock market that recorded its second-largest drop, Herjavec said that he is “not a big believer in gold,” though he understands the people’s need to go or the yellow metal. Bullion is a traditional safe-haven asset that soared to its 7-year high while the stock market took a brutal beating.

According to him, on a long-term basis base metals aren’t going to be an economic indicator. However, he is a believer in bitcoin, which is considered digital gold. He sees bitcoin’s future as the electronic payments but the digital asset is a long way away from that, he said.

Just like stocks, Bitcoin shed half of the gains it made in 2020, so far. Surging as high as $10,600 this month, bitcoin went back to $8,450 level yesterday. But Herjavec said he will buy the crypto asset at its current prices because, in the long term, the price of bitcoin will quintuple.

Referencing an analyst, he said over the long run consumers always go for convenience and bitcoin is just convenient. As for the crazy bitcoin price forecast, that goes as high as a million-dollar, they “don’t sound crazy” to Herjavec and sees it becoming a reality.

But he does say, one has to “disassociate the price of an individual type of Bitcoin.” Herjavec added,

“Because part of the challenge with Bitcoin is there is no one Bitcoin you can buy different types of Bitcoin and I think it’s a bit of a fragmented industry. The minute you have a JPMorgan Chase or you have a large institutional company getting behind it then that world will change.”

Watch the full video here:

Read Original/a>
Author: AnTy

Former Head Of SEC’s Cyber Unit Is Moving To Coinbase’s Law Branch

Robert A. Cohen, the former head of the U. S. Securities and Exchange Commission (SEC) Cyber Unit, will be joining Coinbase’s law firm Davis Polk & Wardwell LLP soon. According to the reports, he is the newest partner in the company.

The executive worked with the SEC for 15 years and quit last month. Every eye was on him ever since, as people were wondering where he would go. After his departure, the division of the SEC is without a leader temporarily, as no one was announced to take his place.

His former unit was, in fact, very focused on the crypto world. It was created back in 2017 by the SEC to check issues involving the blockchain technology.

During his work with the cyber unit, Cohen oversaw several lawsuits and legal activity. He also got famous as he pursued legal action against several Initial Coin Offerings (ICOs). One of the most high-profile cases was the one against Kik Interactive, which happened recently.

Recently, Cohen affirmed that the SEC carefully choose who to go after. Their goal was to get some high-profile cases in order to get the word out. This way, more companies would understand the risks of illegal ICOs and would stop it without the SEC needing to go after every company out there.

Now, Robert A. Cohen has changed sides and will help Coinbase. He is, however, legally barred from speaking with any SEC official for around a year. There are regulations which prevent him from using too much of his influence now that he is out of the public service.

Read Original/a>
Author: Gabriel Machado