The vessel's anchor chain destroyed almost 14,000 sq ft of protected reef, amounting to more than 80% of the coral at the site, the islands' Department of Environment told the Cayman News Service.
The tech tycoon was not aboard the 300ft (95 metre) vessel, The Tatoosh, at the time, said Cayman officials.
Ironically, Mr Allen, who has a $18.1bn (£12.6bn) fortune, runs a charitable foundation that works to protect oceans.
The Tatoosh was moored near two dive sites on the western coast of Grand Cayman during the incident two weeks ago.
Mr Allen's philanthropic foundation, Vulcan Inc, said it was co-operating with authorities, but deflected blame for the reef damage.
Media reports are greatly exaggerated and the investigation by the local authorities is continuing," a statement by Vulcan Inc said.
"The local port authority had directed the Tatoosh to anchor in a designated area.
"The crew moved the vessel, on its own accord, as soon as it learned from local divers that there might be a problem."
The Tatoosh is among the world's largest super yachts.
Fitted with a swimming pool, cinema, basketball court, recording studio and two helicopter pads, it can hold up to 20 guests and 30 crew.
But 63-year-old Mr Allen's other yacht, the Octopus, is even bigger - at 414ft long.
The tycoon, who quit Microsoft in 2000, now runs the Paul G Allen Ocean Challenge, which works to mitigate ocean acidification.
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