The National Securities Market Commission (SEC), for its acronym in English, has established a lawsuit against ICOBox and Nikolay Evodokimov, Founder and CEO of the firm, for the sale of ICO tokens not registered with the regulator.
The Cayman Islands-based firm opened operations in 2017 and by then the SEC had already warned that it would treat the Initial Cryptocurrency Offer (ICO), for its acronym in English, as a sale of unregistered securities.
By November 2018, the Paragon and Airfox projects were accused of violating regulations related to the registration requirements of the sale of securities.
Gladius Network was another controversial defendant; It closed its operations after paying the regulator the charges and was forced to reimburse USD 12.7 million to investors.
The founder of ICOBox must cancel a personal fine
The ruling sought by the SEC against ICOBox, through the United States District Court for the Central District of California, will require a fine of USD 16 million and a lifetime ban on trading securities in the US.
In addition, the regulator also expects the ruling to require Nikolay to pay a personal and civil fine. The amount close to it is close to USD 190,000 for making offers of unregistered securities.
The collection amount for the sale of unregistered tokens amounts to USD 14.6 million; and involves about 2,000 who were not accredited for that purpose either.
Among the allegations contemplated in the complaint is the promise from Evdokimov, where it contemplates that the ICOs as long as the projects were using ICOBox to store their tokens, would appreciate their value.
But, according to the lawsuit, the company acted as an unregistered securities broker that facilitated the commercialization of ICOs by raising more than USD 650 million.
The motion presented by the SEC to the court stipulates that the latter requires Evodokimov and ICOBox to pay their fines in a period not exceeding 14 days to the securities regulator in the United States.
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