Fraudulent activity
By: Finrazor Team
Tags: Fintech, Blockchain, Cryptocurrency, Crypto, Bitcoin

In the spotlight of this week: co-founders of Centra Tech are sentenced to jail, Brian Kelly has launced a new crypto ETF and JPMorgan is interested in digital assets.

The three co-founders of Centra Tech Sorhab Sharma, Raymond Trapani, and Robert Farkas were found guilty of fraud and sentenced to jail

The possibility of using cryptocurrency debit cards in the future is an enticing possibility, interesting many people both inside and outside the crypto community. The founders of the Centra Tech, a startup company, tried to create such cards. They promised to create a means by which crypto investors could pay by using digital assets in everyday marketplaces, however the founders weren’t able to finish what they started. The three co-founders of the company were accused of defrauding investors to the tune of $60 million and now face 65 years in prison each.

The prosecutor’s office claims that during the ICO, the co-founders sold unregulated securities in the form of CTR tokens. Сentra Tech deceived investors, claiming that the company had already signed partner agreements with large corporations. The project’s whitepaper outlined a planned cooperation with Visa, Mastercard and Bancorp.

The total amount of investments into Centra Tech was estimated to be about $60 million, which is not a small sum of money. This project put a lot of effort into campaigning, even having Centra Tech’s croudsale publicly supported on Instagram by Floyd Mayweather and DJ Khaled. Now the conversation has moved on from the ICO to this trial. The prosecutor’s office is calling for Sorab, Raimonda and Roberta to face 65 years of imprisonment and pay an undetermined penalty.

Brian Kelly, the founder of BKCM, an investment company specializing in cryptocurrencies, has launched a new crypto: ETF

The American finance company REX Shares plans to start an exchange investment fund (ETF) for companies using blockchain technology.

According to the head of REX Shares, Greg King, the U.S. Securities and Exchange Commission rejected the company’s application to start a bitcoin-ETF, so they have instead created a blockchain-ETF which is planned to start within a week.

Brian Kelly, a financial analyst and the founder of the cryptocurrency hedge fund, BKCM, will become the active managing director of the new blockchain-ETF.

Earlier in May, Brian Kelly said that when large players from Wall Street, such as the NYSE and Goldman Sachs, begin accepting Bitcoin, it could serve as a catalyst for rapid growth of the digital asset market in the short and medium term.

JP Morgan starts to look into crypto space despite its CEO’s previous comments

According to Daniel Pinto, the co-president of JPMorgan Chase, the bank holding, whose top managers had earlier spoken quite negatively of digital currencies, is now interested in digital assets.

He stated that the technology is likely to play a role in the promotion of the financial system.

We are looking into that space. I have no doubt that in one way or another, the technology will play a role. – Denial Pinto, Co-President at JPMorgan Chase & Co.

He also noted that J. P. Morgan is considering the possibility of working with Bitcoin futures to meet their clients’ needs.

If we need to clear futures of bitcoin, can we do it? Yes. Have we done it? No. – Denial Pinto, Co-President at JPMorgan Chase & Co.

Earlier Jamie Dimon, the CEO of JPMorgan Chase, called all Bitcoin investors ‘stupid’ and promised to dismiss any employee engaged in Bitcoin operations.

One more time we see that big negative words in past could turn just the opposite in the future.