Why cryptos are a big scam? A look inside Netflix's docu-series "Bitconned!"

Cryptocurrency has always sparked doubts, especially in India, where the crypto revolution still feels distant. Yet, many believe that crypto has the potential to generate substantial wealth in the future. Elon Musk, once a frequent figure in crypto news, has recently been silent on the topic, possibly realizing that ventures like SpaceX and Tesla offer more tangible returns. From Wolves of Wall Street to Bitconned, scammers continuously find new ways to siphon money from the public—an endless cycle waiting for the next big con.

A new Netflix documentary, "Bitconned," reveals that while a gullible person may be born every minute, 'crypto' swindlers are always ready to exploit them. The documentary delves into a Florida-based crypto scam run by confessed fraudsters who show little remorse for their deceitful activities.

Centra Tech, co-founded in 2017 by Ray Trapani and Sam ‘Sorbee’ Sharma, capitalized on the initial coin offering (ICO) frenzy of that year. Despite lacking technical knowledge, Trapani and Sharma saw the unlimited money-making potential in the crypto craze.

“We didn’t know anything about this business, but it didn’t matter. It was too easy. We lied, we cheated, and we made millions of dollars,” Trapani admitted.

Inspired by the success of Singapore-based TenX, which raised $20 million in 2017 to launch a digital currency debit card, Trapani and Sharma copied the TenX website verbatim, swapping ‘TenX’ with ‘Centra’. They fabricated impressive bios, falsely claiming Harvard degrees and Wall Street experience, and even invented a fictional CEO, Michael Edwards, using a random professor’s photo they found online.

Despite their fraudulent setup, Centra’s ICO gained traction after a positive blog post by Clif High, a self-proclaimed ‘crypto guru’, who mistakenly endorsed them, confusing Centra with a legitimate company. The documentary reveals Trapani’s lack of ethics, exemplified by his theft of over $100,000 from a customer’s digital wallet after the customer mistakenly sent him his password.

To market their scam, Trapani and Sharma enlisted celebrity promoters like Floyd Mayweather Jr. and DJ Khaled, who received substantial payments to endorse Centra. However, this celebrity attention also attracted media scrutiny. New York Times reporter Nathaniel Popper’s investigation revealed Centra’s fraudulent claims, leading to increased regulatory pressure from the SEC and the Department of Justice.

Ultimately, Sharma was sentenced to eight years in prison, while Trapani received a lighter sentence by cooperating with authorities, continuing his deceptive ways even after his legal troubles.

The documentary draws parallels between the ICO scams of 2017 and the present, highlighting how new altcoins still experience unwarranted surges in value, leading to financial ruin for many. The persistence of such scams indicates a troubling trend of repeated mistakes and misplaced trust in fraudulent projects.

CoinGeek has long warned about scammers in the digital asset space, and this documentary serves as a stark reminder of the industry's pitfalls. Despite constant warnings, many continue to fall victim, driven by the fear of missing out and a desire to protect their ego.

As CoinGeek continues to expose fraud and promote legitimate blockchain projects, the hope remains that even a few investors can be spared from financial disaster by heeding these warnings.

Follow CoinGeek’s Crypto Crime Cartel series, which delves into groups like BitMEX, Binance, Bitcoin.com, Blockstream, ShapeShift, Coinbase, Ripple, Ethereum, FTX, and Tether, who have exploited the digital asset revolution, making the industry a minefield for both naïve and experienced players alike.