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SEC filed another lawsuit against ICO

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SEC files another legal action against ICO

SEC files another legal action against ICO
CONTENT

  • SEC closed another ICO project

  • Founder must pay $ 5 million

  • ICOs may repeat the fate of TON

International consortium of news organizations developing transparency standards.

The US Securities Commission (SEC) has filed another lawsuit against the Boon.Tech ICO for distorting information about the platform’s operation, as well as fraud on the part of the project organizers.

SEC filed another lawsuit against ICO

Not tokens, but securities

As in the case of the infamous Telegram ICO, the Securities Commission regarded the issue of Boon.Tech project tokens as a security. According to an official statement from the department, the project team raised more than $ 5 million to develop a recruiting platform around the world. In particular, the document says:

“According to the order of the Securities and Exchange Commission, from November 2017 to January 2018, Boon.Tech and Pavithran raised about $ 5 million, selling Boon Coins to more than 1,500 investors in the US and around the world to raise funding for development and promotion platforms for publishing vacancies of employers for freelancers and remote employees ”.

The statement of claim states that Boon Coins, according to SEC officials, is a stock, not a currency or commodity, and is subject to registration with the SEC. However, the organizers of the project ignored the procedure for registering securities, thereby violating American law..

SEC filed another lawsuit against ICO

In addition, the SEC accuses the organizers of the project of fraud.

“Pavithran and Boon.Tech made false and misleading claims, including claiming that Boon Coins were stable and secure because the Boon.Tech platform removed the inherent volatility of digital asset markets by using proprietary technology to hedge Boon Coins across against the US dollar, although in fact Boon.Tech did not have such a patented technology, “the document says..

Both parties agreed to pay a fine to Boon.Tech in the amount of $ 600,334 and to waive the $ 5 mky profit.

Pavitran and his company must also “destroy all Boon Coins in their possession, submit requests to remove Boon Coins on all third-party digital asset trading platforms, and refrain from participating in any future digital asset securities offerings. In addition, the decree requires Pavitran to pay a fine of $ 150,000 and prohibits him from holding the position of a manager or director of a public company, ”the decree says..

SEC announced hunt for ICO

It looks like the SEC has announced a real hunt for ICO projects. The main victim of the Securities Commission was Pavel Durov’s TON project. The court hearings on the ICO lasted more than six months, but in the end the victory was on the side of the department. Telegram team was forced to close the TON project.

However, this is not the only project that was closed by the decision of the SEC. Earlier, the US Securities Commission announced that the assets of a multi-level marketing company that provided services for trading in the FOREX markets, as well as cryptocurrency mining, were frozen. Officials accuse organizers of money laundering and misuse of investments.

SEC files another legal action against ICO

The ETH project may also be under threat. One of the main changes in the work of the system will be the introduction of the Proof of Stake algorithm, which will allow ETH tokens to participate in the staking process, but will automatically transfer the altcoin from the category of a commodity to the category of a security. In this case, the company will have to go through a complicated registration procedure and obtain a special permission from the SEC to use tokens. If permits are not received, then Ethereum 2.0 will face the fate of the infamous TON project..

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