Sohrab Sharma, commonly known as "Sam Sharma," a co-founder of the cryptocurrency firm Centra Tech, has been sentenced to eight years in prison for orchestrating an illegal initial coin offering (ICO) that defrauded investors out of $25 million. The sentencing was announced by the U.S. Attorney for the Southern District of New York, marking a significant development in the ongoing scrutiny of fraudulent activities within the cryptocurrency sector.

Centra Tech, based in Miami, promoted itself as a provider of crypto-based financial products, including a specialized debit card. However, the firm's operations were shrouded in deceit and illegitimacy, as revealed in the criminal proceedings.

Sharma's sentencing also includes three years of supervised release and a monetary punishment comprising a $20,000 fine and the forfeiture of $36,088,960. This significant financial penalty underscores the severity of the fraud perpetrated by Sharma and his associates.

The case dates back to July 2017 when Sharma, along with partners Robert Farkas and Raymond Trapani, launched an ICO to raise funds for Centra Tech. The ICO successfully amassed $25 million from investors who were misled into believing the firm's exaggerated and false claims. The investors were convinced that Centra Tech would offer a range of viable, crypto-integrated financial products, which never materialized.