Robert Farkas Sentenced to Prison for $25 Million Centra Tech Cryptocurrency Fraud

Federal prosecutors have handed down a prison sentence against Robert Farkas, the co-founder of Miami-based Centra Tech, over his role in orchestrating an elaborate cryptocurrency fraud that extracted $25 million from unsuspecting investors. The sentencing marks another significant enforcement action in the ongoing battle against ICO-related financial crimes that plagued the cryptocurrency market.

How the $25 Million ICO Scheme Deceived Investors

Robert Farkas, together with co-conspirators Raymond Trapani and Sohrab Sharma, launched the fraudulent token sale in July 2017 with the explicit goal of raising capital from the investing public. The trio misrepresented Centra Tech as a legitimate financial technology company offering cryptocurrency-based products, including a purported debit card system. To enhance their credibility, they fabricated an impressive roster of non-existent executives and falsely claimed the company held 38 state money transmitter licenses—claims that were entirely manufactured. These material misrepresentations successfully persuaded investors to purchase the company’s tokens, ultimately netting the conspirators $25 million in fraudulent proceeds.

According to the U.S. Attorney for the Southern District of New York, Robert Farkas and his associates weaponized deception as their core business strategy. “They created fictitious executives and fabricated business relationships with legitimate institutions to dupe investors into handing over millions of dollars for a fraudulent ICO,” explained Ian T. Graff, chief counsel to the acting U.S. attorney.

The Legal Reckoning: Fraud Charges and Guilty Plea

Robert Farkas previously admitted guilt to conspiring to commit securities fraud and wire fraud in connection with his use of material misrepresentations and omissions to solicit investors. This guilty plea represented his acknowledgment of the deliberate deception employed throughout the scheme.

Sentencing and Consequences for Robert Farkas

The court handed Robert Farkas a sentence of one year and one day in federal prison, along with three years of supervised release upon his completion of the sentence. Beyond incarceration, Farkas was ordered to forfeit $347,062 in cash and a Rolex watch that were purchased using proceeds derived from the cryptocurrency fraud. The personal asset seizure underscores the financial toll imposed on perpetrators of investment schemes.

In a parallel enforcement action, the United States Marshals Service liquidated ethereum cryptocurrency that had been seized from Centra Tech, converting approximately $33.4 million worth of digital assets into government custody during 2026. This seizure and liquidation demonstrated the government’s expanded capability to trace, recover, and convert illicit cryptocurrency holdings into recoverable assets.