United States federal prosecutors are pushing for a major prison sentence to be levied against one among the founders of Centra Tech – the firm behind a renowned ICO scheme earlier in 2017 that was promoted by professional boxer Floyd Mayweather as well as musician DJ Khaled.
Within an official government sentencing submission filed earlier on 3rd Oct., the govt requested that United States District Judge Lorna Schofield sentence Centra Tech co-founder Robert Joseph Farkas to “a substantial term of imprisonment” to discourage another fraudster’s from conducting illicit ICOs.
“While legitimate ICOs represent a new and efficient means to boost capital, the loss of investor confidence which will result from fraudulent ICO offerings will make it harder for honest coin issuers to boost capital via the digital asset markets,” the prosecution added.
“As a result, a considerable sentence within this case is required to send a robust message to others, just like the defendant, who seek to use digital assets or other new technologies to commit old-fashioned fraud.”
Farkas pleaded guilty earlier in June to 2 counts of fraud concerning his role within the ICO that swindled over $25 Mln from investors from earlier in July via October 2017 in June of this year.
Centra Tech lied about licensing agreements with Visa, Mastercard, and Bancorp to drive ill-informed hype for its cryptocurrency debit product and ICO, that was promoted with celebrity endorsements.
Earlier in Farkas’ 23rd Oct. sentencing submission, he requested sentencing of time already served [55 days] plus home confinement and “a significant amount of community service,” claiming to possess played an “indisputably” considering bit part within the scheme.
The prosecution disagreed, advancing that federal guideline recommend between 70 & 87 months in prison, while the probation office suggested 60 months.
“Day in and outing, for about nine months, Farkas participated during a scheme that directly caused losses of tens of many dollars in funds from many victim investors.”