2 Founders of $32 Million Centra Virtual Currency Project Are Arrested

Federal authorities have arrested two founders of a virtual currency that raised $32 million from investors last year and won an endorsement from the boxer Floyd Mayweather.

The co-founders of the Centra virtual currency, Sam Sharma and Robert Farkas, were arrested on Sunday, a day before the Securities and Exchange Commission released a complaint against the men and announced that it was halting the project.

Centra raised $32 million last summer and fall in a so-called initial coin offering, a method of fund-raising in which companies sell custom virtual currencies. The Centra team said at the time that the Centra token would give investors access to a new virtual currency exchange and a virtual currency debit card that would operate on the Visa and Mastercard networks.

Source: TheNewYorkTimes

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