Sohrab Sharma, one of the co-founders of cryptocurrency firm Centra Tech facing charges related to a $25 million initial coin offering scam, is reportedly planning to plead guilty.

According to a July 13 study from Bloomberg, Sharma may avert a November trial engagement as his lawyers told a federal judge he would exist interested in changing his plea.

The declaration comes after Sharma'south associate Robert Farkas was convicted of conspiring to commit securities and wire fraud on June xvi. Farkas faces upwards to 87 months in prison and a $250,000 fine.

A history of scamming

The U.S. Section of Justice (DOJ) stated that Sharma, Farkas, and Raymond Trapani were arrested in April 2018.

The 3 reportedly lied to investors about having a fictitious Main Executive Officer (CEO) at Centra Tech, Michael Edwards, besides as having a money transmitter license in 38 states. The visitor made false claims about partnerships with major firms including Visa.

The charges from the DOJ allege the trio's goal from these deceptions was to dupe people into investing in Centra Tech's initial coin offering (ICO) of Centra tokens, also called CTR tokens.

Celebrity support

When the ICO was held between July and October 2017, it was backed by celebrities including former pro boxer Floyd Mayweather and music producer DJ Khaled.

Both men were subsequently charged past the Securities and Exchange Commission (SEC) for unlawfully promoting the ICO and failing to disclose payments they received from Centra Tech to their followers.

The instance involving the third co-founder in this enterprise, Trapani, is still scheduled for trial in November.