Sohrab Sharma Sentenced to Eight Years for $25 Million Centra Tech Crypto Fraud

Sohrab Sharma, known by the alias “Sam Sharma,” has received an eight-year federal prison sentence for orchestrating a massive cryptocurrency scheme through Centra Tech. The Miami-based company defrauded investors of $25 million through an illegal initial coin offering (ICO), according to a formal announcement from the U.S. Attorney for the Southern District of New York. Sharma was also ordered to pay $20,000 in fines and forfeit approximately $36 million in illicit proceeds.

The Centra Tech Deception: How Sohrab Sharma Misled Investors

Centra Tech falsely promoted itself as a legitimate cryptocurrency financial services platform, promising investors access to crypto-based products including a branded debit card. In reality, Sohrab Sharma and his co-conspirators used deceptive marketing and material misrepresentations to solicit investments through fraudulent ICO fundraising efforts. The company issued digital tokens to unsuspecting investors who believed in the legitimacy of these promises.

In July 2017, Sharma, alongside co-founders Robert Farkas and Raymond Trapani, launched the fraudulent ICO that ultimately netted $25 million from victims. Sharma previously pleaded guilty to charges of conspiracy to commit securities fraud, wire fraud, and mail fraud. These charges stemmed directly from his deliberate use of false claims and omissions designed to deceive investors into purchasing the worthless digital tokens.

Co-Conspirators Face Justice

The enforcement action against Sohrab Sharma extends beyond an individual punishment. Robert Farkas, one of Sharma’s key partners in the scheme, received a one-year-and-one-day prison sentence in December. Farkas must also complete three years of supervised release, forfeit $347,062 in stolen assets, and surrender a Rolex watch purchased with proceeds from the fraud.

Federal Assets Recovery

U.S. Marshals seized cryptocurrency holdings from Centra Tech and liquidated the ether assets for approximately $33.4 million. This recovery represents a significant enforcement victory in the government’s ongoing efforts to combat cryptocurrency fraud and protect retail investors from sophisticated deception schemes.

Market Context

Current Bitcoin trading remains volatile, with BTC trading at $67.27K at the time of this report, down 1.42% over the past 24 hours. The Centra Tech case serves as a critical reminder of the importance of regulatory oversight and investor due diligence in the evolving cryptocurrency landscape.