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.