Sohrab Sharma sentenced to eight years in prison for Centra Tech fraud

Sohrab Sharma, also known as “Sam Sharma,” faces U.S. justice for orchestrating one of the largest scams in the cryptocurrency sector. The co-founder of Centra Tech received an eight-year prison sentence for running a fraudulent fundraising campaign via an ICO (Initial Coin Offering), stealing $25 million from gullible investors.

The Fraud Scheme Orchestrated by Sohrab Sharma

The scam launched by Sohrab Sharma and his accomplices Robert Farkas and Raymond Trapani began in July 2017. The Miami-based company Centra Tech claimed to offer sophisticated financial products related to cryptography, including a revolutionary debit card designed to facilitate transactions in digital assets. This deceptive façade allowed the three men to persuade thousands of investors to participate in their ICO.

To attract funds, Sohrab Sharma and his associates used false statements and strategic omissions regarding the actual capabilities of their products. Investors, misled by enticing promises, injected $25 million into the project, believing they were part of a technological revolution. In reality, the money was used to enrich the scammers rather than develop legitimate financial solutions.

Legal Consequences for Sohrab Sharma and Co-Defendants

Federal justice finally caught up with Sohrab Sharma for his criminal activities. In addition to his eight-year prison sentence, he will also serve an additional three years on supervised release and pay a $20,000 fine. Even worse, the court ordered the forced recovery of $36,088,960 in restitution to the victims.

Sohrab Sharma previously pleaded guilty in a negotiated plea, admitting to charges of conspiracy to commit securities fraud, wire fraud, and postal fraud. His accomplice Robert Farkas also appeared before the U.S. District Court for the Southern District of New York. In December 2020, Farkas served a sentence of one year and one day in prison for his involvement in the scam. Like Sohrab Sharma, he must also serve three years of supervised release and return $347,062 derived from illicit gains. The court also ordered the confiscation of a Rolex watch purchased with proceeds from the crime.

Asset Recovery and Key Lessons

The US Marshals Service, responsible for enforcing the sentence, sold the cryptocurrencies Ether seized during the investigation against Centra Tech officials. These digital assets generated approximately $33.4 million, intended to partially compensate victims’ losses and strengthen restitution mechanisms.

The Sohrab Sharma case highlights the crucial importance of vigilance in the cryptocurrency sector. While blockchain technology offers genuine prospects, the lack of regulation in the early days of ICOs created opportunities for scammers. This case demonstrates that federal authorities are now taking crypto ecosystem fraud seriously, and Sohrab Sharma and his counterparts will not go unpunished.