The prosecution requested a “substantial time” for the organizer of the fraudulent ICO Centra Tech
The US prosecution asks to sentence one of the founders of Centra Tech, which involved Floyd Mayweather and DJ Khaled in promoting its ICO in 2017, to a long prison term.
In an appeal to the court on October 31, the federal prosecutor writes that the co-founder of Centra Tech, Robert Farkas, needs to be assigned a “significant term of imprisonment” in order to prevent similar violations by other ICO organizers in the future..
“While full-fledged ICOs represent a new and effective way to raise capital, the loss of investor confidence that can occur from fraudulent ICOs will make it difficult for honest issuers to raise capital through digital asset markets. Thus, in this case, it takes a significant amount of time to send an intelligible message to others like the defendant, who want to use digital assets and other new technologies to commit old-fashioned fraud, “the document says..
In June, Farkas pleaded guilty to conspiring to commit securities and electronic communications fraud through a $ 25 million digital investment scheme..
Centra Tech raised funding in mid-2017, and in December investors filed a lawsuit against the project, accusing it of violating securities laws. Later, the US Securities and Exchange Commission (SEC) filed its own lawsuit against Centra Tech.
On October 23, Farkas asked to count the 55 days he had already spent in custody, house arrest and “significant amounts of social activity,” and to take into account the “undeniably” modest role he played in the entire scheme when deciding.
The prosecution refers to government regulations that in this case provide for 70 to 87 months in prison, while the Probation Service proposes to appoint 60 months in prison..
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