SEC Charges Issuer and CEO With Misrepresenting Platform Technology in Fraudulent ICO

The Securities and Exchange Commission today announced charges against Virginia-based Boon.Tech and its chief executive officer Rajesh Pavithran for fraud and registration violations in connection with a $5 million initial coin offering (ICO) of digital asset securities. According to the SEC’s order, from November 2017 to January 2018, Boon.Tech and Pavithran raised approximately $5 million by selling Boon Coins to more than 1,500 investors in the U.S. and worldwide to raise funding to develop and market a platform to connect employers posting jobs with freelancers seeking work. The order finds that the Boon Coins were offered and sold as investment contracts and were therefore securities, and that Boon.Tech and Pavithran failed to register the offering.