US prosecutors are demanding a harsher punishment for one of the founders of Centra Tech, which in 2017-2018 extorted over $ 25 million from investors.
The most important information:
To stop fraudsters from raising funds through ICOs, US authorities have demanded stricter penalties for such criminals
US prosecutors said there is a need to send a strong message to people who use or intend to use virtual currencies and other new technologies to "old-fashioned fraud"
Penalties should be more restrictive, federal prosecutors say
Regarding the case of Robert Joseph Farks - one of the three founders of the 2017-2018 project called Centra Tech, which turned out to be a financial fraud, the American authorities said that tougher penalties are needed for committing this type of crime. According to the US government, more restrictive laws would discourage others from breaking the law.
Of course, Farks himself describes himself as playing a supporting role in Centra Tech. However, the government pointed out that the man, while communicating with his co-conspirators, was aware that he was misleading public opinion. These lies concerned the products allegedly offered by the company as well as its leadership. Well, the three originators of this project invented fake directors for the Tech Center and gave them fake qualifications, and also advertised a non-existent debit card targeted at cryptocurrencies.
Though Farkas mostly followed the orders of his main associate, he knew the actions he was taking were not legal. The US government noted that although the federal sentencing guidelines indicated that the sentence for the offender should be between 70 and 87 months imprisonment, the probation officer only recommended that he be detained for 60 months.
According to the US authorities, stricter penalties are needed here to discourage other people from committing crimes related to the ICO. The prosecutor noted that the rest of the industry is currently suffering because of numerous frauds that investors lose trust in honest startups raising capital to develop their own projects.