- SEC reveals that between the November 2017 and January 2018 period, BoonTech had sold approximately $5 million worth its native token, Boon Coin to 1500 investors in the US
- The company and its CEO have agreed to discard the $5 million and the interest ($600,334) that was raised in the ICO as disgorgement
- The SEC press release also reveals that the decentralised job platform had made false and deceiving statements regarding the stability and security of the Boon Coin
The US Securities and Exchange Commission has pressed charges against the company, Boontech and its Founder & CEO Rajesh Pavithran on grounds of not complying with SEC’s anti-fraud and registration provisions of the federal securities laws.
Boon Coin is Not Registered by Any Regulatory Authority
Boontech, is a Virginia based decentralised platform made for job seekers and freelancers. The platform is entirely based on Artificial Intelligence and Blockchain Technology. Moreover, it allows entrepreneurs and freelancers to give and receive cryptocurrency rewards respectively. The judgement passed by the SEC reveals that between the November 2017 and January 2018 period, the company had sold approximately $5 million worth its native token, Boon Coin to 1500 investors in the US. However, throughout the ICO the digital asset, Boon Coin had not been registered with any official regulatory body.
False Information of the Platform’s Technology
The SEC press release also reveals that the decentralised job platform had made false and deceiving statements regarding the stability and security of the Boon Coin. The officials said that they have removed all the volatility associated with the asset by using a specific patent-pending technology. The technology enables the Boon Coin to be used as a hedge against the US Dollar. Unfortunately, Boontech had no such technology and it became obvious that all this while the company was lying.
Moreover, the company told the investors that Boontech’s platform was much more efficient and scalable than its fellow platforms. This was because it was built on Boontech’s own blockchain, Boon. The press release also exposed that the company never had its own blockchain which means Boon never existed. In fact it was created on the same blockchain platforms that the other companies use.
Pavithran Banned From Becoming An Official Of Any Public Company
The company and its CEO have agreed to discard the $5 million and the interest ($600,334) that was raised in the ICO as disgorgement. However, they have still not admitted or denied SEC’s charges on them. The SEC report also mandates the destruction of all the Boon Coins that the company holds and to eradicate all the coins that are still available on some trading platforms. And lastly, Pavithran as the CEO has to pay a hefty penalty of $150000 and is banned from acting as an officer or a director of any public company.
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