The United States Securities and Exchange Commission (SEC) is seeking more than $16 million in penalties from ICOBox. And its founder, Nikolay Evdokimov.
The Commission states that ICOBox and its founder, Nikolay Evdokimov carried out the selling “ICOS” tokens as unregistered securities.
According to a filing in the district court of California, the SEC is seeking a default judgment against ICOBox and its CEO. The suit is requesting the judge approve penalties as well as lifetime ban from marketing, selling securities in the US.
The regulator also wants Evdokimov to pay a separate civil penalty of just under $190,000.
To remind, the SEC previously brought charges against the Cayman Islands-based exchange claiming it had breached securities laws. This was through selling ICOS tokens to investors without first registering with the regulator.
The token sale had raised a total of $14.6 million from approximately 2,000 unaccredited investors.
US SEC accusation against ICOBox
Michele Wein Layne, regional director of SEC’s Los-Angeles local Office, condemns ICOBox and Evdokimov actions, stating it was illegal.
She further noted, “By ignoring the registration requirements of the federal securities laws, ICOBox and Evdokimov exposed investors to investments, which are now virtually worthless.”
The suit alleges that the original filing claims the company acted as an unregistered broker facilitating 30 sales that raised a collective $650 million.
Digital assets a significant concern in 2020
Recently, the SEC’s Office of Compliance Inspections and Examinations, identified new financial technologies, including digital assets among its significant concerns in the coming fiscal year.
SEC Commissioner Hester Peirce urged the Commission to come up with a more adaptable regulatory approach. Specifically, concerning crypto offerings in 2020. She stated that the crypto community needs a way to go from a securities offering to a utility token one. One that is not covered by securities laws or embedded by their full armor.
In other news, the SEC recently claimed that Telegram is a security.