ICO project SoluTech settles charges of fraud and security law violations with SEC

The now shut-down blockchain start-up SoluTech has settled charges of fraud and security law violations with the U.S. Securities and Exchange Commission (SEC) according to a court filing published Friday. 

According to the official filing, the Connecticut-based firm illegally offered and sold digital asset securities and was involved in fraudulent misrepresentations from April 2018 through March 2019. These sales were used to fund the development of a blockchain-based platform called the Scroll Network, as well as several other products. 

SoluTech and its co-founder Nathan Pitruzzello raised $2.4 million in its initial coin offering (ICO) from over 100 investors, some of whom included U.S. residents.

Under the settlement, Pitruzzello can never host a digital token security offering, but will still be allowed to buy and sell assets for himself. He also will have to pay $25,000 in civil penalties.

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.