SoluTech Settles SEC Fraud Charges & Security Law Violations

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The now-defuncoluTech Settlements SEC Theft Charget blockchain initiative, SoluTech has resolved allegations of theft and security breaches with the U.S. Securities and Exchange Commission (SEC) as per a suit filed released on Friday.

The tokens of SoluTech come into the heading of securities 

According to the official document, the Connecticut-based firm unlawfully issued and sold digital asset securities called SCRL. These revenues were used to support the creation of a blockchain-based system called the Scroll Network, as well as many other items. The U.S. regulator argued that the company’s tokens fell into the equity group dependent on the Howey exam. It did not, however, receive any permission from the SEC for selling them.

Moreover  , the company was embroiled in deceptive distortions from April 2018 to March 2019. SoluTech and its co-founder Nathan Pitruzzello earned $2.4 million in their initial coin offering ( ICO) from more than 100 participants, some of whom comprised U.S. citizens. 

Pitruzzello was also suspected of “recycling” the company’s sales and resources and the process of product growth.

SoluTech resolves abuse claims against SEC

Without accepting or rejecting these results, SoluTech and Pitruzzello agreed to deal with SEC. 

Under the deal, Pitruzzello will never be able to host a virtual token protection product, but will also be allowed to purchase and sell properties for himself. In addition, the cryptocurrency firm was directed to delete all its tokens within the next  1 month and to ban its trade on the secondary market within 10 days.  He would also have to pay $25,000 in civil fines.

The US regulator has started to clamp down on a number of crypto firms for reportedly executing illicit ICOs. The Crypt Rules are also in the gray field throughout most nations. Many countries across the world registered a rise in cryptocurrency fraud this year amid the continuing Covid-19 disease outbreak. The increase in crypto-related crime has sparked fears among policymakers across nations.

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