SEC goes after token sales platform operator for $16 million
By Bob Garcia
The financial watchdog continues to drop the hammer on companies that don’t play by the rules
Just after the US Securities Exchange Commission (SEC) announced that it would pay more attention to companies profiting from digital currency, the financial watchdog is getting busy, seeking a default judgment against a token-selling platform. ICOBox and its founder, Nikolay Evdokimov, are in the SEC’s sights, and, according to a document filed in the Central District Court of California yesterday, a total of $16 million need to be paid to the commission in the next 14 days per a judge’s orders.
This situation arose after a complaint filed back in September 2019. In this suit, the SEC went after ICOBox and Evdokimov for running operations with unregistered securities. In 2017, there were $14.6 million offered worth of digital assets while the company also operated as an unregistered broker. The way the penalty is calculated is taking the collected amount by the company of $14.6 million and adding all the underserved gains for a bit over $1.4 million. On top of that, Evdokimov must pay a personal civil penalty for a total of $189,426.
In the original suit, the SEC declared that ICOBox and Evdokimov helped 30 clients as a mediator to sell tokens, and saw $650 million collectively gathered from investors. The company alone allegedly raised $14.6 million from over 2,000 investors from the US and across the world. However, Evdokimov failed to register the token sales platform or even apply for an exemption, asserting that the company wasn’t offering securities. Even after this suit was filed by the SEC, the company continued its operations and expanded the scope of services. However, it has all come crashing down due to the SEC’s intervention.