Another Centra Co-founder Charged

The Department of Justice has disclosed charges against another main backer of digital currency startup Centra, a move that comes after two other persons were arrested on similar charges.

The U.S. Prosecutor’s Office for the Southern District of New York stated Friday that Ray Trapani has been captured in relations to Centra’s token deal which was heavily backed by heavyweight champion Floyd Mayweather, Jr.

In particular, Trapani has been accused of one count of securities fraud, one count of wire fraud and another for misrepresentation.

Centra founders Sam Sharma and Robert Farkas were named earlier in the month in a Securities and Exchange Commission (SEC) and Department of Justice (DOJ) filling. Their startup was initially touted as a lucrative venture back in September by the boxing champ Floyd Mayweather, Jr who embraced their ICO.

The main selling point for the startup was the allegation that they had arrangements with major card services Visa and MasterCard that would have allowed holders of their digital currencies to cash in their gains through the platforms of the well known plastic companies. The startup was later found to have had no links or arrangements with the two card giants.

“As alleged, Raymond Trapani conspired with his co-defendants to lure investors with false claims about their product and about relationships they had with credible financial institutions. While investing in virtual currencies is legal, lying to deceive investors is not,” Deputy U.S. Attorney Robert Khuzami said in a statement.

Trapani is charged separately by the SEC this according to revelations by the Justice Department.