ICOBox and its founder Nikolay Evdokimov has become the latest crypto startup to come under the radar of the U.S Securities and Exchanges Commission (SEC) for conducting an initial coin offering (ICO) without registering with the regulatory agency.
According to a press release published today by the SEC, the regulators alleged that ICOBox raised $14.6 Million in a 2017 ICO and promised to use raised funds to develop a platform for ICOs. The startup allegedly sold ICOS tokens to over 2000 investors during their initial coin offering and after that went ahead to serve as a broker by helping their dozens of clients raise at least $650 million.
Notably, the SEC claims that ICOS tokens which the startup sold are virtually worthless even though they had said during their ICO that the tokens would allow holders to buy other tokens sold on their platform at a discounted rate.
“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,” said Michele Wein Layne, Regional Director of the Los Angeles Regional Office.
According to the release, the SEC is seeking to impose injunctive relief, disgorgement with prejudgment interest, and civil money penalties on ICOBox and its founder Evdokimov Nikolay for defying registration requirements of the federal securities laws.
As mentioned earlier, ICOBox is just one of the many 2017 ICOs charged by the SEC over the past year with the most recent being a popular rating website, ICORating. Last month, the firm settled charges worth $268,998 with the U.S SEC for not disclosing payment it received to promote certain projects on its website.