19 September 2019 14:43, UTC

The US Securities and Exchange Commission (SEC) stated in a press release that ICOBox and its founder Nikolai EVDOKIMOV violated securities laws by selling unregistered securities in 2017, with a follow-up of other ICOs tokensales.

According to a press release published on Wednesday, Evdokimov raised $14.6 mln through the sale of ICOS tokens to more than 2,000 investors, promising buyers that the tokens would increase in value. Token holders were informed that they can purchase other tokens on the ICOBox platform with a discount if using ICOS.

“According to the complaint, the ICOS tokens are virtually worthless,” the report says:



“Defendants claimed that ICOBox would be successful — and the ICOS tokens valuable — due to the efforts of ICOBox’s management team, who would curate potential digital asset projects and attract ‘100+’ clients per month. As of the date of ICOBox’s offering, ICOBox had yet to support a single token sale to completion.”



“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.”

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In addition to its own token sale, ICOBox ran the sale of other tokens totaling $650 mln through its platform, acting as an unregistered broker, as per report. The US Securities and Exchange Commission is looking for Evdokimov and ICOBox to demand that investors have their funds returned with interest. The defendant is also to pay civil money penalties and suffer injunctive relief. Michele WEIN LANE, SEC Los Angeles Regional Office director, noted:Read the best crypto news analysis here! bitnewstoday.com Bitcoin, investments, regulation and other cryptocurrencies