Furthermore, the SEC alleged that the Respondents lied to investors that its platform was more advance, faster, and more scalable than competitors because it has its own independent blockchain. In reality, Boon.Tech does not have its own independent blockchain. It is developing its platform based on the same ethereum platform used by its competitors.
The Commission determined that Boon.Tech and Pavithran engaged in business practices that violated the antifraud and registration provisions of the federal securities laws.
In a statement, SEC Enforcement Division, Cyber Unit Chief said, “Investors are entitled to truthful disclosures from issuers of securities, whether digital or otherwise. Pavithran and Boon.Tech defrauded investors by convincing them to fund this endeavor based on the allure of innovation that simply did not exist.”
Boon.Tech and Pavithran to disgorge $5 million
The Respondents agreed to settle without admitting or denying the allegations of the SEC.
As part of the settlement, they agreed to the Commission’s Order requiring them to disgorge the $5 million raised in the ICO and to pay prejudgment interest of $600,334.
