June 6, 2023

SEC wins trial against ICOBox in case of unregistered sale of tokens

SEC won the trial against the Russian project ICOBox and its founder Nikolai Evdokimov. Losing side must pay $ 16 million in fines and reimbursement of illegally received funds.

United States Securities and Exchange Commission (SEC)sued ICOBox in September 2019, and in January demanded to recover $ 16 million from the project. According to the statement, ICOBox organized several token sales, which were unregistered securities.

At the same time, ICOBox not only sold itsICOS own token, but also helped raise up to $ 650 million for more than 30 customers. The ICOS sale alone raised more than $ 14.5 million for the period from August 15 to September 15, 2017. The court ruled that ICOBox should pay $ 16 million for working as an unregistered broker.

Startup founder Nikolai Evdokimov receivedwarning from the SEC for overly aggressive project promotion. However, at the end of 2018, he left ICOBox, and soon the project was closed. Currently, the ICOBox website is down, and neither Evdokimov nor other representatives of the team appeared in court for the latest hearings.

“After transferring the case to court, the ICOBox project lefttheir offices, and rents for several months remained unpaid. Attempts to send requests to Evdokimov’s last known email address were unsuccessful, ”the SEC said.

The Commission also noted that there was no evidence.ICOBox registration, and claims of 150 employees worldwide remain unverified. Moreover, while promoting the ICOS token, the company disseminated information misleading investors.

Note that initially the ICOS token cost more than $ 55, however, it lost most of its value before the cessation of trading in November 2019 - then the price of the token fell to $ 2.41.