Altcoin News: SEC Charges ICOBox Platform

September 19, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The U.S. Securities and Exchange Commission (SEC) has charged the ICOBox platform and its founder Nikolay Evdokimov with violating U.S. laws in the token sale process in 2017 and subsequent initial coin offering (ICO) activities.

According to the press release, Evdokimov raised $14.6 million through the sale of ICOs tokens to more than 2,000 investors, promising a rate hike with the start of trading. ICOs holders were also given the opportunity to participate in ICOs on the ICOBox platform and buy tokens at discounted prices.

“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.

In addition to selling its own tokens, ICOBox helped to raise $650 million through tokens to dozens of third-party companies and thus acted as an unregistered broker, SEC reports.

SEC requires a refund to investors, payment of fines and seeks the issuance of an injunction.

In August, the SEC fined the Russian crypto-portal ICO Rating with $269,000 fine.

Author: Marko Vidrih