The U.S. Securities and Trade Fee (SEC) is in search of greater than $16 million in penalties from ICOBox for promoting "ICOS" tokens as unregister
The U.S. Securities and Trade Fee (SEC) is in search of greater than $16 million in penalties from ICOBox for promoting “ICOS” tokens as unregistered securities.
According to a filing in the USA District Court docket for the Central District of California, the SEC seeks a default judgment in opposition to Cayman Islands-based ICOBox and founder and CEO Nikolay Evdokimov, asking the choose to approve penalties in addition to a lifetime ban from advertising or promoting securities within the U.S.
The regulator additionally desires Evdokimov to pay a separate civil penalty of just below $190,000.
The SEC brought costs in opposition to ICOBox in September, claiming it had breached securities legal guidelines by promoting ICOS tokens to traders with out first registering with the regulator. The token sale had raised a complete of $14.6 million from roughly 2,000 unaccredited traders in 2017.
The grievance alleges Evdokimov had promised ICOS would respect in worth as initiatives began utilizing ICOBox to host token gross sales. The unique submitting claims the corporate acted as an unregistered securities dealer by facilitating 30 token gross sales that raised a collective $650 million.
The SEC initially warned initiatives in 2017 it will deal with ICOs as unregistered securities gross sales. In November 2018 the regulator charged initiatives Airfox and Paragon with violating securities sale registration necessities. Crypto startup Gladius Community announced in November it was closing its operations after settling costs with the regulator and refunding traders $12.7 million.
The SEC filed its movement to the federal courtroom for a default judgment that, if granted, would power ICOBox and Evdokimov to pay the penalties to the SEC in 14 days.
Learn the total submitting beneath:
Learn SEC counsel Amy Jane Longo’s declaration right here:
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