Boon. Tech Must Surrender $5 Million Earnings From ICO After Facing Fraud Charges From The SEC

The Securities and Exchange Commission has charged Boon. Tech and its CEO Rajesh Pavithran with fraud and registration violations after a $5 million initial coin offering, according to a recent SEC announcement. 

Over the course of three months Boon. Tech raised $5 million selling Boon Coins to over 1,500 investors to create a platform aimed at connecting employers with freelance workers.

Boon Coins were sold as investment contracts, meaning they were designated as securities, but the company failed to register the offering. The SEC's order also alleges that Boon. Tech misled investors, telling them that Boon Coins were stable because the company had developed patent-pending technology to hedge the coins against the U.S. dollar.

Boon. Tech also told investors that the platform was being built upon its own blockchain, when it was actually built using the same public blockchain as competitors. 

Boon. Tech agreed to a settlement deal requiring them to surrender the $5 million gathered through the ICO and an additional $600,334. Boon. Tech must also discontinue the use and distribution of Boon Coins. Additionally, Pavithran must pay a $150,000 penalty and is barred from leading a public company in the future.

By Emily Mason

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