US SEC Orders ICOBox Startup Must Pay $16 M After It Failed To Act On Legal Action From The Commission
US SEC Orders ICOBox Startup Must Pay $16 M After It Failed To Act On Legal Action From The Commission
March 8, 2020
US SEC Orders ICOBox Startup Must Pay $16 M After It Failed To Act On Legal Action From The Commission
US SEC Orders ICOBox Startup Must Pay $16 M After It Failed To Act On Legal Action From The Commission
March 8, 2020

The US Securities and Exchange Commission (SEC) has ordered that ICO broker ICOBox must pay $16 million after the startup failed to act on previous legal action from the commission.

On March 6, according to a statement, it has been reported that US District Judge Dale Fischer of California sided with the SEC in a default judgment, after the alleged unregistered broker failed to respond to the commission’s lawsuit against the startup from September 2019.

However, ICOBox allegedly conducted an unregistered token offering, as well as unregistered broker activities. The SEC filed with California courts in January 2020 seeking such a default ruling.

On September 18, 2019, the SEC announced legal action against ICOBox and creator Nikolay Evdokimov, stating that the firm allegedly held an unregistered digital asset offering in 2017, dealing with its assets to over 2,000 participants. The startup reportedly touted the assets would gain financial worth.

ALSO READ :  A Brief Guide To Blockchain Games

The SEC said that at the time of its September 2019 action, ICOBox’s tokens had decreased in value. ICOBox allegedly raised approximately $14.6 million during its ICO.

Michele Wein Layne, the Regional Office Regional Director of Los Angeles, said:

“By ignoring the registration requirements of the federal securities laws, ICOBox and Evdokimov exposed investors to investments, which are now virtually worthless, without providing information that is critical to making informed investment decisions.”

Likewise, the March 6 brief also included that ICOBox reportedly conducted broker dealings for more than 30 other ICOs, raising $650 million in the process.

It has been analyzed that according to the brief, founder Evdokimov has not yet addressed the SEC’s legal action. On his LinkedIn profile, Evdokimov still lists himself as ICOBox’s vision director, in addition to his status as founder and director for a stablecoin known as SRL.

However, the SEC tried to contact the founder in January, with no success.

ALSO READ :  VeChain Launches Tea Traceability Platform In China

The SEC said in the brief:

“After service of the complaint was effected at ICOBox’s office, the premises was vacated, with several months’ rent left unpaid. Efforts to email Evdokimov’s last known address … garnered no response (though no emails bounced back).”

Thus, with a deadline set 14 days from the ruling, the March 6 action states Evdokimov must pay a civil penalty to the tune of $192,768, while ICOBox must pay $16 million.

Source: law360.com | cointelegraph.com | Image: bitcoinist.com


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
Share This

Share This

Share this post with your friends!