SEC Seeks $16M From ICOBox for Unregistered Token Sale

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According to a filing within the us District Court for the Central District of California, the SEC seeks a default judgement against Cayman Islands-based ICOBox and founder and CEO Nikolay Evdokimov, asking the judge to approve penalties also as a lifetime ban from marketing or selling securities within the U.S.

The regulator also wants Evdokimov to pay a separate civil penalty of slightly below $190,000.

The SEC brought charges against ICOBox in September, claiming it had breached securities laws by selling ICOS tokens to investors without first registering with the regulator. The token sale had raised a complete of $14.6 million from approximately 2,000 unaccredited investors in 2017.

The complaint alleges Evdokimov had promised ICOS would appreciate in value as projects started using ICOBox to host token sales. the first filing claims the corporate acted as an unregistered securities broker by facilitating 30 token sales that raised a collective $650 million.

The SEC originally warned projects in 2017 it might treat ICOs as unregistered securities sales. In November 2018 the regulator charged projects Airfox and Paragon with violating securities sale registration requirements. Crypto startup Gladius Network announced in November it had been closing its operations after settling charges with the regulator and refunding investors $12.7 million.

The SEC filed its motion to the court for a default judgement that, if granted, would force ICOBox and Evdokimov to pay the penalties to the SEC in 14 days.

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