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April 19, 2018

Centra Shut Down By SEC

Blockchain news has arrived! The United States Securities and Exchange Commission just announced charges against the two founders of Centra. They were intercepted and arrested at the airport leaving the United States and a flurry of news stories and social activity followed. People called for exchanges to de-list the coin (and many exchanges have done so or are considering it). Angry users and investors are complaining about the team on social media. Centra was a very large ICO with celebrity backing and promised a very valuable service. So what went wrong?
The SEC alleged that Centra founders made multiple false claims in their $32m fundraiser. First, they claimed partnerships with Visa and Mastercard at the time of the fundraising. According to the SEC, they did not have these partnerships. Second, they had multiple fake profiles added to the team leadership. Finally, the team allegedly mis-spent their funds. After raising a large amount of money in late 2017, by early 2018 they were nearly out.
The Centra team has defended the listing of fake profiles on their website, first threatening legal action against their accuser and then blaming the developers creating the page for deliberately creating fake founders as filler data. Regardless of how it came about, it is important to have correct and well-tested marketing material, as well as any resources to help with compliance. While there is nothing to be done about falsely announcing partnerships, engineering resources to assist with disclosures, KYC and marketing can be made by the blockchain engineering team at No Rest Labs.

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