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

Startups • September 27, 2020, 11:06AM EDT
Partner offers
The Block may may earn a commission if you use our partner offers, at no extra cost to you.

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.

AUTHOR

Saniya More profile picture Saniya More

Saniya More (pronounced: Saan-ya Mo-ray) is a quadrilingual journalist at The Block. She got her master’s degree from the Columbia University Graduate School of Journalism and did her undergraduate degree at the S.I. Newhouse School of Public Communications, Syracuse University. Her work has appeared in CBS News, Bangkok Post, Thai Enquirer, Globalists, Byline Times and other publications. When she’s not chasing a story, you will most likely find her biking, tweeting, taking photos or creating Spotify playlists for every occasion.

See More
Connect on

WHO WE ARE

The Block is a news provider that strives to be the first and final word on digital assets news, research, and data.

+ Follow us on Google News
Connect with the block on

More by Saniya More