Two heads of a tech company that raised tens of millions through an initial coin offering for what was sold as the world's first multi-blockchain debit card now face federal civil and criminal charges for allegedly defrauding investors.

Sohrab Sharma and Robert Farkas, identified by officials as the co-founders of Centra Tech Inc., were charged with securities and wire fraud by the U.S. Securities and Exchange Commission, and securities and wire fraud charges by the Justice Department. The charges were filed in the U.S. District Court for the Southern District of New York. The pair were arrested in Florida on Sunday, and appeared before the local district court on Monday.

According to federal officials, Sharma and Farkas issued a fraudulent ICO that raised at least $32 million from thousands of investors. The funding was supposed to build a suite of financial products, such as the debit card investors who were told would be backed by Visa and Mastercard. The card would allow instantaneous conversion of cryptocurrencies into U.S. dollars and other forms of government-backed legal tender. The ICO was promoted by boxing champion Floyd Mayweather and music producer DJ Khaled.

Federal authorities said that Farkas had made flight reservations to leave the United States, but was arrested before he was able to board his flight.

“As alleged, Sohrab Sharma and Robert Farkas took advantage of widespread investor interest in the rapidly growing cryptocurrency market to raise millions of dollars in investments in a startup company based on a false sales pitch,” Deputy U.S. Attorney Robert Khuzami of the Southern District of New York said in a statement. “While the cryptocurrency industry may be a new frontier, it is subject to the same laws against investor fraud as any other type of company.”

According to prosecutors, Centra Tech began advertising the ICO and the suite of cryptocurrency-based products in July 2017. Investors were sold on a “truly … ground floor opportunity to be part of a global solution to the blockchain currency dilemma” with the creation of the debit card, a wallet app that would allow people to register the debit card, and “cBay,” an Amazon-esque marketplace “especially for cryptocurrency acceptance.”

Centra Tech induced investors to purchase their ICO through the Ethereum cryptocurrency platform, in part, by advertising a supposed relationship with Visa and Mastercard. The company went so far as to declare Bancorp Inc. was on board to issue the cards. In reality, the company had no relationship with any of the financial service companies, according to federal officials.

“As we allege, the defendants relied heavily on celebrity endorsements and social media to market their scheme,” Steve Peikin, co-director of the SEC's division of enforcement, said in a statement. “Endorsements and glossy marketing materials are no substitute for the SEC's registration and disclosure requirements as well as diligence by investors.”

According to the SEC, Kostelanetz & Fink partner Sharon McCarthy represents Sharma. McLaughlin & Stern partner Daniel Horwitz was identified as the same for Farkas. Neither responded to a request for comment.