SEC Charges ICO Incubator and Founder for Unregistered Offering and Unregistered Broker Activity
Litigation Release No. 24601 / September 19, 2019
Securities and Exchange Commission v. ICOBox and Nikolay Evdokimov, No. 19-cv-08066 (C.D. Cal. filed September 18, 2019)
The Securities and Exchange Commission sued ICOBox and its founder Nikolay Evdokimov for conducting an illegal $14 million securities offering of ICOBox's digital tokens and for acting as unregistered brokers for other digital asset offerings.
According to the SEC's complaint, ICOBox raised funds in 2017 to develop a platform for initial coin offerings by selling, in an unregistered offering, roughly $14.6 million of "ICOS" tokens to over 2,000 investors. The complaint alleges that defendants claimed the tokens would increase in value upon trading and that ICOS token holders would be able to swap them at a discount for other tokens promoted on the ICOBox platform. According to the complaint, the ICOS tokens are virtually worthless. The complaint further alleges that ICOBox failed to register as a broker but acted as one by facilitating initial coin offerings that raised more than $650 million for dozens of clients.
The SEC's complaint charges ICOBox and Evdokimov with violating the registration requirements of Sections 5(a) and (c) of the Securities Act of 1933 and Section 15(a) of the Securities Exchange Act of 1934 and seeks injunctive relief, disgorgement with prejudgment interest, and civil money penalties.
The SEC's investigation was conducted by Brent W. Wilner and was supervised by Victoria A. Levin, Alka N. Patel, and Michele Wein Layne of the Los Angeles Regional Office. The litigation is being conducted by Amy J. Longo of the Los Angeles Regional Office.