SEC (The United States Securities and Exchange Commission) has recently charged the tech company Boon.Tech, along with its CEO Rajesh Pavithran. The charges include cryptocurrency fraud and violations in registration. Bitcoin.com says that the charges are based on the ICO (initial coin offering) of Boon Coins. The ICO managed to raise $5 million and attracted 1,500 investors.
According to a press release by the SEC, the company did not register Boon Coins as securities when selling them to investors. Apart from that, the regulator notes that the firm has made several false claims about their cryptocurrency to the buyers.
For example, it claimed to have developed its own blockchain to boost the speed and scalability of the platform against competitors. However, in fact, that was not true, among other misleading statements, the SEC notes in the press release.
As per the SEC’s press release, Boon.Tech has agreed to settle without making a statement about the cryptocurrency fraud charges. The SEC’s order will force the company to return the $5 million, along with the interest of $600,334. The firm has to get rid of existing Boon Coins and remove them from all trading platforms. Besides, it will lose the ability to participate in future ICOs of digital tokens. Its CEO will also have to pay a fine of $150,000. In addition, he will not be able to serve as a director or officer at a public company.