Binance may Delist Centra Tech’s CTR Token After SEC battle

Binance may Delist Centra Tech’s CTR Token After SEC battle

Cashing in on the cryptocurrency boom of 2017, where digital currencies gained value at astronomical levels as people pumped in money, many companies decided to list their own tokens created on the Blockchain.
One such start-up company was Centra Tech, which generated significant buzz owing to its large scale reveal and promotion which included celebrities like DJ Khaled and Floyd Mayweather.
But the dreams of Centra Tech were dashed when it was charged by the United States Securities and Exchange Commission, or the SEC, for running a fraudulent company designed to scam investors and stakeholders alike.
To add to Centra Tech woes, leading cryptocurrency exchange Binance has now issued a statement against the company. In the statement, Binance informs its users and the people about Centra Tech’s current situation and says that the Binance team is closely observing the situation to ensure the best interests of their users.
The statement also said that if the company decides to delist CTR tokens, which are Centra Tech’s cryptocurrency tokens, from its website and exchange, it would give its users a notice period of atleast 72 hours.
The statement also talked about the high degree of risk associated with CTR due to the involvement of CTR’s team members in controversial and fraudulent acts and their subsequent arrests by United States law enforcement authorities.
While the statement did not give any further details, it was pointing to the investigation which the US SEC launched against the company on the 2nd of April.
According to the complaint filed by the SEC, the co-founders of Centra Tech, Sohrab “Sam” Sharma and Robert Farkas have committed and organized an Initial Coin Offering, or an ICO, which has been designed to scam innocent users.
The total scam is estimated to be of around $32 million. The complaint further says that Farkas had been interrogated by law enforcement authorities as he was trying to catch a plane which would take him outside the United States.
Centra Tech has also been accused of lying and misleading its users about its partnerships. The company, in addition to paying for misleading endorsements by DJ Khaled and Mayweather, also boasted about its false partnerships with financial companies including Visa, Mastercard and Bancorp.
The SEC has also accused the company of creating fake identities of its CEO Michael Edwards and CFO Jessica Robinson and falsely claimed that they have passed out of Harvard. In reality, those people do not exist.
The SEC further asks Centra Tech to return all funds it accumulated from its users. It remains to be seen how the SEC handles the case and whether investors would get their money back or not.