Home Business Regulation SEC solicit sanction from ICOBox, founder over breach

SEC solicit sanction from ICOBox, founder over breach

The United States Securities and Exchange Commission (SEC) is seeking over $16 million in disgorgements and civil penalties from the token sale platform ICOBox and its founder Nikolay Evdokimov.

FinanceFeeds earlier reported the news, citing the latest filings with the California Central District Court. The regulator is pushing for a default judgment in the case.

ICOBox and Evdokimov were sued by the SEC in September for illegally raising $14 million via unregistered securities sale of “ICOS” tokens to more than 2,000 investors. In addition to the sale, ICOBox was accused of facilitating the sale of another $650 million in token sale for “dozens of clients” through its platform, thereby acting as an unregistered broker.

“By ignoring the registration requirements of the federal securities laws, ICOBox and Evdokimov exposed investors to investments, which are now virtually worthless” Michele Wein Layne, regional director of the SEC’s Los Angeles Regional Office, said at the time.

The SEC is now seeking disgorgement of $14,600,000 plus prejudgment interest thereon in the amount of $1,459,428.99, for a total of $16,059,429.99 from ICOBox and Evdokimov, per Friday’s report. Evdokimov is ordered to pay a civil penalty in the amount of $189,426.

The defendants will have to pay the penalties to the SEC within 14 days after entry of the judgment, per the report.

Additionally, earlier this week, the SEC’s Office of Compliance Inspections and Examinations, identified new financial technologies including digital assets among its major concerns in the coming fiscal year.

The SEC also announced a series of proposed changes to their classification of “accredited investor,” a designation based on certain income and/or knowledge requirements.

The basic concept of an accredited investor is a person who can fend for themselves when it comes to the risk associated with early-stage investment which can involve sifting through murkier business practices but also higher potential rewards.


Please enter your comment!
Please enter your name here

Must Read

Ethereum’s Long Term Chart Is Extremely Simple To Read

The weekly Ethereum chart, as opposed to the daily chart, is simple and concise. There are 2 simple...

US Department of Transportation Says Blockchain Has Many Applications For Unmanned Aircraft Systems (Drones)

Blockchain technology could assist with adjusting and improving current technical challenges in the expanding business of commercial drone delivery, said the US...

Security tokens, blockchain settlement draw interest from institutions: MIT Bitcoin Expo panel

Amid growing competition between providers, institutions in the traditional finance space are looking at blockchain as another way to offer value to...

Networking 2.0 at Blockchain Life 2020

Make hundreds of connections at Blockchain Life 2020 The 5th Blockchain Life 2020 returns to Moscow on April 22-23 at the unique media...

Irish drug dealer loses $57M bitcoin fortune after losing access codes

Irish Bitcoin drug dealer Clifton Collins, who has forfeited digital assets worth $57 million, has continued his trial...