Binance has decided to delist the CTR token as well as CTR/BTC and CTR/ETH trading pairs from its exchange following reports concerning fraudulent activities and controversy regarding the Centra Tech team.
The exchange has issued a 72-hour notice alerting the public to the fact that they will delist the CTR token on April 8th, 2018. According to the announcement however, token holders will be able to make CTR token withdrawals till May 5th, 2018.
The SEC’s Charges
Only two days ago, the US Securities and Exchanges Commission (SEC) instituted legal proceedings against the co-founders of Centra Tech, Robert Farkas and Sohrab ‘Sam’ Sharma.
The charges allege that the two orchestrated a fraudulent token sale that raised more than $32 million from thousands of investors last year.
The SEC further states that the founders gave deceptive information concerning the company and product behind the token. They made claims that their platform would issue a debit card backed by Visa and MasterCard.
According to the SEC, this was not true as the company in fact had no relationships with Visa or MasterCard.
Additionally, the SEC says that the team behind the project was made up of fictional executives with impressive biographies and that it issued false or misleading marketing materials.
The company paid “celebrities to tout the ICO on social media” with the likes of boxing promoter Floyd Mayweather and music producer DJ Khaled being part of the campaign.
The ICO already has a pending lawsuit instigated by investors who claimed that the company had no CEO or working product and that it sold unregistered securities.