Last Updated: December 5, 2025 | Word Count: ~5,800 | Reading Time: 23 minutes

Quick Facts

Specification Value
Project Name Centra Tech
Token Symbol CTR
Status ❌ Fraud – Founders Imprisoned
Category Crypto Debit Card / Payments
ICO Date September 2017
Amount Raised $32 Million
Celebrity Endorsers Floyd Mayweather, DJ Khaled
Founders Sohrab Sharma, Robert Farkas, Raymond Trapani
Main Fraud Fake Visa/Mastercard partnerships
SEC Charges Filed April 2018
Sentences 2-3 years prison each

Table of Contents

  1. Executive Summary
  2. What Was Centra Tech?
  3. The Celebrity Connection
  4. How the Fraud Worked
  5. The Unraveling
  6. SEC and DOJ Actions
  7. Sentences and Outcomes
  8. Lessons Learned
  9. Frequently Asked Questions
  10. Sources & References

Executive Summary

In September 2017, Centra Tech burst onto the crypto scene with bold claims: a cryptocurrency debit card that would let users spend Bitcoin, Ethereum, and other cryptocurrencies anywhere Visa or Mastercard was accepted. The pitch was irresistible—instant crypto-to-fiat conversion at point-of-sale, backed by partnerships with the world’s largest payment networks.

To amplify their message, Centra’s founders enlisted two of the biggest names in entertainment: Floyd Mayweather Jr. and DJ Khaled. When the undefeated boxing champion posted “#CentraTech ICO starting in a few hours” to his 16 million Instagram followers, investors flooded in. The ICO raised $32 million in weeks.

There was just one problem: everything was a lie.

Centra had no partnership with Visa. No partnership with Mastercard. The “CEO” listed on their website was a fictional person with a stock photo for a headshot. The product they described didn’t exist and couldn’t exist under their claimed terms.

By April 2018, the SEC had charged all three founders with fraud. By 2020, Sohrab Sharma, Robert Farkas, and Raymond Trapani had all pleaded guilty and were sentenced to federal prison. Floyd Mayweather and DJ Khaled paid six-figure fines for failing to disclose their paid endorsements.

Centra Tech became a watershed moment for crypto regulation—proof that celebrity endorsements and slick marketing couldn’t protect fraudsters from federal prosecutors.

What Was Centra Tech?

The Product Claims

Centra Tech marketed the “Centra Card”—supposedly a debit card that would:

  • Instantly convert cryptocurrency to fiat currency at any point of sale
  • Work with Visa and Mastercard payment networks globally
  • Support 8+ cryptocurrencies including BTC, ETH, LTC, XRP, DASH, and others
  • Integrate with a mobile wallet for seamless spending
  • Offer no conversion fees (a remarkable claim)

The pitch was compelling for 2017: crypto holders wanted to spend their gains, but converting to fiat was cumbersome. A card that did it automatically at checkout would be revolutionary.

The Founders

Sohrab “Sam” Sharma – CEO

  • Presented as a tech entrepreneur and the public face of Centra
  • Handled marketing, investor relations, and celebrity outreach
  • Background was vague and largely unverifiable

Robert Farkas – Co-Founder

  • Miami-based businessman
  • Involved in operations and strategy
  • Had prior business experience but not in fintech

Raymond Trapani – Co-Founder/CFO

  • Described as the “mastermind” in later DOJ filings
  • Managed finances and allegedly orchestrated much of the deception
  • Created fake team member identities

The ICO

Centra conducted its initial coin offering in September 2017, riding the ICO boom:

ICO Detail Value
Token CTR (ERC-20)
Price ~$0.30 per CTR
Hard Cap $32 million
Participants Thousands worldwide
Platform Ethereum

The token sale sold out quickly, fueled by aggressive social media marketing and the celebrity endorsements.

The Celebrity Connection

Floyd Mayweather Jr.

The undefeated boxing champion (50-0) was one of Centra Tech’s most prominent promoters. His involvement included:

  • Instagram posts to 16+ million followers promoting the ICO
  • “CentraTech ICO starting in a few hours” announcements
  • Photos with Centra founders at events
  • Payment: $100,000 for his endorsements

Mayweather had become a frequent crypto promoter in 2017, also endorsing Stox and Hubii Network ICOs. His “Money Mayweather” brand made him perfect for selling get-rich-quick investment schemes.

DJ Khaled

The music producer and social media star also promoted Centra Tech:

  • Instagram posts calling CTR a “game changer”
  • Endorsement as “#CentraKey” holder
  • Payment: $50,000 for his posts

Neither celebrity disclosed they were being paid, violating SEC regulations requiring disclosure of paid endorsements for securities.

The SEC Response to Celebrities

In November 2018, the SEC settled charges with both:

Floyd Mayweather:

  • Penalty: $100,000 fine
  • Disgorgement: $300,000 (promotional payments from 3 ICOs)
  • Interest: $14,775
  • Total: ~$614,775

DJ Khaled:

  • Penalty: $100,000 fine
  • Disgorgement: $50,000
  • Interest: $2,725
  • Total: ~$152,725

Both agreed to not promote securities for 3 years (Mayweather) or 2 years (Khaled).

SEC Chairman Jay Clayton stated: “Investors should be skeptical of investment advice posted to social media platforms, and should not make decisions based on celebrity endorsements.”

How the Fraud Worked

Fake Partnerships

The core of Centra’s fraud was fabricated partnerships:

Visa Partnership: Centra claimed to be an official Visa partner. False. Visa had no relationship with Centra and never authorized use of their name.

Mastercard Partnership: Same story. Centra displayed Mastercard logos and claimed partnership status. Completely fabricated.

When investors asked about these partnerships, Centra provided fake documentation and vague responses suggesting NDAs prevented disclosure of details.

Fake Team Members

The SEC complaint revealed that Centra invented fictional executives:

  • “Michael Edwards” – Listed as CEO with an impressive biography and professional headshot. The photo was a stock image. The person didn’t exist.
  • Multiple other team members were either fake or had fabricated credentials
  • LinkedIn profiles were created for fictional employees

The Non-Existent Product

While Centra showed prototypes and mockups of the Centra Card, the product as described was impossible:

  1. No card network approval: Neither Visa nor Mastercard had sanctioned their network for this use
  2. No banking partner: Centra had no licensed banking relationships
  3. No regulatory compliance: The product would require money transmitter licenses in every jurisdiction
  4. Technical impossibility: The instant, fee-free conversion described wasn’t feasible

Fund Misappropriation

Investor funds were used for:

  • Personal expenses of founders
  • Luxury purchases
  • Marketing (including celebrity payments)
  • NOT for product development

The Unraveling

Timeline of Collapse

February 2018: The SEC formally notified Centra Tech that it was under investigation for potential securities violations. The founders were aware federal investigators were examining their claims.

March 2018: Internal chaos ensued:

  • Bank accounts began being frozen
  • Key employees were terminated
  • Founders started destroying evidence (later cited in criminal charges)

March 30, 2018: Centra’s corporate bank accounts were depleted. Most remaining staff were let go.

April 1, 2018: FBI agents arrested Sohrab Sharma at New York’s JFK Airport as he attempted to flee the country. Robert Farkas was arrested the same day in Miami.

April 2018: The SEC filed its civil complaint, and the DOJ announced criminal charges.

What Tipped Off Investigators?

Several factors drew regulatory attention:

  1. Visa and Mastercard denials: When media inquired, both companies denied any partnership
  2. Fake team members identified: Crypto investigators found the stock photos
  3. Celebrity promotion scrutiny: High-profile endorsements attracted SEC attention
  4. Investor complaints: Reports of non-delivery and refund denials
  5. Basic due diligence: The claims were easily disprovable

SEC and DOJ Actions

SEC Civil Complaint (April 2018)

The Securities and Exchange Commission charged:

  • Centra Tech, Inc.
  • Sohrab Sharma
  • Robert Farkas
  • Raymond Trapani (added via amended complaint)

Charges:

  1. Violation of Securities Act Section 17(a) – Fraud in securities offerings
  2. Violation of Exchange Act Section 10(b) and Rule 10b-5 – Securities fraud
  3. Unregistered offer and sale of securities

Relief Sought:

  • Permanent injunctions
  • Disgorgement of ill-gotten gains
  • Civil penalties
  • Officer-and-director bars

DOJ Criminal Indictment

The Department of Justice brought criminal charges:

Counts against all three founders:

  1. Conspiracy to commit securities fraud
  2. Securities fraud
  3. Conspiracy to commit wire fraud
  4. Wire fraud

The indictment detailed:

  • The fake Visa/Mastercard partnerships
  • The fictional CEO and team members
  • Misuse of investor funds
  • Destruction of evidence after learning of investigation

Sentences and Outcomes

All three founders eventually pleaded guilty and received federal prison sentences:

Sohrab “Sam” Sharma

Detail Information
Plea Guilty (June 2020)
Charges Conspiracy, securities fraud, wire fraud
Sentence 8 years federal prison
Restitution Ordered
Post-Release Supervised release, barred from securities

Sharma received the longest sentence as the most public face of the fraud.

Robert Farkas

Detail Information
Plea Guilty
Charges Conspiracy, fraud
Sentence 1 year federal prison
Restitution Ordered
Post-Release Supervised release

Farkas received a lighter sentence, suggesting cooperation with prosecutors.

Raymond Trapani

Detail Information
Plea Guilty
Charges Conspiracy, fraud
Sentence 1 year federal prison
Restitution Ordered
Post-Release Supervised release

Lessons Learned

For Investors

1. Celebrity Endorsements Mean Nothing Floyd Mayweather can knock someone out in the ring, but he’s not qualified to evaluate blockchain technology. Celebrity endorsements are paid advertisements, not investment advice.

2. Verify Partnership Claims Centra’s fraud could have been exposed with one phone call to Visa or Mastercard. Major companies have investor relations and press contacts—use them.

3. Check the Team Reverse image search every headshot. Google every name. Fake teams with stock photos are a classic scam indicator.

4. If It Sounds Too Good, It Is “Instant, fee-free conversion accepted everywhere” was a fantasy in 2017. Question extraordinary claims.

For the Industry

1. Due Diligence Matters Exchanges that listed CTR and platforms that facilitated the ICO could have caught obvious red flags.

2. Regulation Follows Fraud Centra Tech was a major catalyst for SEC crypto enforcement. The agency cited it in subsequent guidance about ICO fraud.

3. Celebrity Promotions Have Consequences The Mayweather/Khaled settlements established that paid crypto promotions require disclosure.

For Regulators

Centra Tech demonstrated that traditional securities fraud laws apply to crypto tokens. The SEC’s Cyber Unit (now the Crypto Assets and Cyber Unit) was validated by this early success.

Frequently Asked Questions

What was Centra Tech?

Centra Tech was a cryptocurrency company that claimed to offer a debit card allowing users to spend crypto anywhere Visa or Mastercard was accepted. It raised $32 million in a September 2017 ICO. The company and its product claims were fraudulent—the Visa and Mastercard partnerships were fake, and the founders were later convicted of fraud.

Who endorsed Centra Tech?

Boxing champion Floyd Mayweather Jr. and music producer DJ Khaled both promoted Centra Tech on social media. Neither disclosed they were paid ($100,000 and $50,000 respectively). Both later paid SEC fines for failing to disclose the paid nature of their endorsements.

What happened to the Centra Tech founders?

All three founders were charged with fraud:

  • Sohrab Sharma: 8 years federal prison
  • Robert Farkas: 1 year federal prison
  • Raymond Trapani: 1 year federal prison

All were ordered to pay restitution and barred from securities activities.

Was the Centra Card real?

No. The Centra Card as described never existed. The company had no partnerships with Visa or Mastercard, no banking relationships, and no regulatory approvals needed to offer such a product. Promotional materials showed mockups, but no functional product was ever delivered.

Did investors get their money back?

Minimal recovery. The SEC obtained asset freezes, but most funds had been spent on personal expenses, marketing, and the celebrity endorsements. Investors in scam ICOs rarely recover significant portions of their investments.

What did Floyd Mayweather pay?

Floyd Mayweather paid approximately $614,775 total: a $100,000 penalty, $300,000 in disgorgement (from multiple ICO promotions), and interest. He was also barred from promoting securities for 3 years.

Why is Centra Tech significant in crypto history?

Centra Tech was one of the SEC’s earliest and most high-profile crypto fraud cases. It demonstrated that:

  1. Traditional securities laws apply to token sales
  2. Celebrity endorsements have regulatory requirements
  3. The SEC would aggressively pursue ICO fraud
  4. Founders could face significant prison time

Is CTR token still tradeable?

The CTR token technically still exists on the Ethereum blockchain but has no value and is not traded on any legitimate exchange. It’s a worthless artifact of the fraud.

Sources & References

  1. SEC Press Release – “SEC Halts Alleged ICO Scam” (April 2018) – sec.gov
  1. DOJ Press Release – “Founders of Cryptocurrency Company Indicted in Manhattan Federal Court” – justice.gov
  1. SEC Litigation Release – LR-24117 – sec.gov
  1. SEC Settlement with Mayweather and Khaled – November 2018 – sec.gov
  1. Times of India – “SEC charges Indian-origin man with fraud” – timesofindia.com
  1. NASDAQ – “Centra Tech Co-founder Pleads Guilty” – nasdaq.com

Disclaimer

This article is for informational and educational purposes only. It does not constitute financial, investment, or legal advice. The crypto market carries significant risks. Always conduct your own research (DYOR).

Article by: LAB Blockchain Summit Research Team Category: Crypto Scams | ICO Fraud Tags: centra tech, CTR, crypto scam, floyd mayweather, dj khaled, SEC, ICO fraud

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