SEC has announced that it has sanctioned Blockchain-based job platform, Boon.Tech over hosting an illegal Initial Coin Offering and trying to scam investors.
In the official statement, the Securities and Exchange Commission (SEC) said the charges were levelled against the Blockchain-based job platform over their failure to register the ICO(Initial Coin Offering).
Furthermore, the US regulatory outfit said they had charged the CEO of the platform, Rajesh Pavithran as SEC said they misled the entire public and investors.
In the statement, SEC said the CEO and his company raised about $5 million from the ICO platform from 2017 to 2018. According to the activities of the company, they offered boon coins for sale as about 1,500 investors purchased.
The platform was used by freelancers to find prospective clients
The Blockchain-based job platform is used majorly by freelancers who offer their services as a means to connect with prospective clients. According to the regulatory body, the platform failed to register the boon coins before they started the sale of the coins.
Furthermore, SEC announced that the platform misled the general public because they announced that the coins on the platform were stablecoins because of an alleged technology that eliminates volatility. In their final statements, SEC said Boon.Tech did not own such technology.
Illegal Blockchain-based job platform fined
The Blockchain-based job platform was also sanctioned because they told their investors that their platform was fast, efficient and presented more scalability because they were using their Blockchain.
According to a high ranking officer at SEC, firms need to be truthful with their investors if they plan to issue securities. She further stated that the CEO of Boon.Tech misleads the general public after they made claims that were not true concerning their platform.
Presently, Boon.Tech has agreed to forfeit the entire money gotten from the sale of the coins. Furthermore, the platform has been asked to destroy all the boon coins in its possession and pay a fine of $600,335
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