DJ Khaled and Floyd Mayweather promoted his 2017 ICO; Now, he faces a year behind bars

Published at: Dec. 15, 2020

A Manhattan court has sentenced the operator of the fraudulent crypto investment firm Centra Tech to a year and a day in prison.

Per a Tuesday announcement from the Department of Justice, Robert Farkas successfully solicited $25 million in investment during the 2017 initial coin offering boom. The ICO famously included promotion from boxer Floyd Mayweather and musician DJ Khaled, both of whom got in legal trouble for failing to disclose that they were paid for their participation.

On top of the celebrity endorsements, Farkas' scheme included lies about Centra Tech's licensing as a money services business in 38 states, as well as partnerships with Visa and Mastercard. Given the brazen nature of the operation, prosecutors were apparently looking to throw the book at Farkas. Today's sentence is, consequently, lighter than expected, with one year and a day being the minimum for Farkas to qualify as a felon.

Co-founders Sohrab Sharma and Raymond Trapani have also pleaded guilty.

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