Centra Tech Co-Founder Sohrab Sharma Faces Prison Over $25M Crypto Fraud

Sohrab Sharma, known as “Sam Sharma,” the co-founder of cryptocurrency company Centra Tech, has received an eight-year prison sentence for orchestrating an illegal initial coin offering (ICO) that defrauded investors of $25 million. The Miami-based company had falsely claimed to offer crypto-based financial services including a branded debit card, according to official court documents from the U.S. Attorney for the Southern District of New York.

The Centra Tech Fraud Operation

In July 2017, Sohrab Sharma collaborated with co-conspirators Robert Farkas and Raymond Trapani to launch an ICO that ultimately raised $25 million from unsuspecting investors. The three orchestrated a sophisticated scheme involving material misrepresentations and deliberate omissions to attract capital for digital tokens. Sharma had previously pled guilty to conspiring to commit securities fraud, wire fraud, and mail fraud in connection with these activities.

The fraudulent operation hinged on false promises about Centra Tech’s technological capabilities and financial products. Investors who purchased the digital tokens believed they were backing a legitimate cryptocurrency enterprise with real-world applications, only to discover later that the entire operation was engineered to steal their money.

Legal Consequences for Sohrab Sharma and Associates

Beyond the eight-year sentence, Sohrab Sharma must complete three years of supervised probation following his release and pay a $20,000 fine. More significantly, he has been ordered to forfeit $36.1 million in proceeds—a massive financial penalty designed to recover fraudulent gains.

His co-conspirator Robert Farkas received a lighter sentence of one year and one day in prison, suggesting his role was subordinate to Sharma’s leadership in the scheme. Farkas must also comply with three years of supervised release and surrender $347,062 plus a Rolex watch purchased with stolen investor funds—tangible evidence of how fraudsters exploit venture capital for personal enrichment.

Government Asset Recovery Efforts

Federal authorities demonstrated their commitment to asset recovery by having the U.S. Marshals Service liquidate ether cryptocurrency seized from Centra Tech’s operations. This enforcement action netted approximately $33.4 million—a significant recovery that partially compensated for investor losses and demonstrated the government’s capability to track and recover digital assets hidden on blockchain networks.

Industry Lessons and Broader Context

The Sohrab Sharma case stands as a critical precedent in crypto fraud enforcement, illustrating how early ICO-era schemes exploited regulatory gaps and investor inexperience. The case underscores the necessity for due diligence when evaluating cryptocurrency projects, particularly those promising unrealistic returns or making vague claims about revolutionary technology without substantive evidence.

As of February 2026, Bitcoin trades around $68.18K with a 24-hour gain of 5.03%, while Ethereum sits at approximately $2.06K. The cryptocurrency market continues to attract both legitimate projects and potential bad actors. Investors should heed lessons from the Centra Tech case, where sophisticated fraudsters like Sohrab Sharma weaponized ICO fever to fleece unsuspecting participants, reinforcing that regulatory oversight and criminal prosecution remain essential safeguards for market integrity.