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Saturday, June 22, 2024 | Back issues
Courthouse News Service Courthouse News Service

Class Claims Securities Backed by Digital Currencies Were Bogus

A Miami Beach-based firm bilked thousands of online investors out of more than $30 million by selling them unregistered securities backed by digital currencies, an investor claims in court.

(CN) - A Miami Beach-based firm bilked thousands of online investors out of more than $30 million by selling them unregistered securities backed by digital currencies, an investor claims in court.

In a federal class action filed in Miami on Wednesday by Emily Komlossy of Hollywood, Florida, lead plaintiff Jacob Zowie Thomas Rensel claims Centra Tech Inc. and its officers marketed an "initial coin offering" to raise funds for the creation of "the world's first multi-blockchain debit card with a smart and insured wallet."

As explained in the complaint, the debit card would function on existing Visa and Mastercard networks "and allow instant transactions using digital currencies."

Rensel says he invested $3,250.75, only to learn later through an article in the New York Times that Centra Tech did not have any relationship with Visa or Mastercard, and had never applied to run on their networks.

He said based on this and other information, he came to realize that Centra Tech's claims were "apparently fabricated." Rensel also claims the “Michael Edwards” identified by Centra Tech as its chief executive officer is not a real person.

He is seeking  compensatory, injunctive, and rescissory relief on behalf of himself and his proposed class, and repayment of all ill-gotten funds.

Officials with Centra Tech did not immediately respond to a request for comment from Courthouse News.

Categories / Business, Consumers, Criminal, Financial, Securities, Technology

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