The Securities and Exchange Commission (SEC) accused Kelvin Boon LLC doing business as Boon.Tech and its CEO Rajesh Pavithran of violating federal securities laws in connection with its fraudulent initial coin offering (ICO).
According to the SEC, Boon.Tech and Pavithran raised approximately $5 million by selling digital tokens called Boon Coins in the ICO from November 2017 to January 2018
Allegations against Boon.Tech and Pavithran
Over 1,500 investors in the U.S. and overseas purchased Boon Coins during the ICO. They were not aware that the offering was not registered with the SEC. Thus, the federal securities regulator alleged that it was a fraudulent ICO.
Additionally, the SEC alleged that Boon.Tech and Pavithran made false and misleading statements about the capabilities of its platform.
They claimed that it is a “decentralized platform and collection of smart contracts forming a decentralized job marketplace.” They also claimed that it has a patent-pending technology to eliminate the volatility of the cryptocurrency market and obtain stability in the platform.” In reality, Boon.Tech does not have that kind of patent-pending technology.
