ICOBox SEC Lawsuit Update – No Opposition Filed


According to the latest ICOBox SEC Lawsuit Update, ICOBox has not filed nor served any opposition or other response to the SEC’s motion yet. The defendants’ deadline was 21 January, 2020, for filing an opposition or response to the SEC’s motion for default judgment.

30 January, 2020 | AtoZ Markets – The US Securities and Exchange Commission (SEC) took action against ICOBox and its founder Nikolay Evdokimov last year. The defendants’ conducted an illegal securities offering of ICOBox’s digital tokens worth $14 million. The defendants also acted as unregistered brokers for other digital asset offerings. ICOBox claims to be Blockchain Growth Promoter and Business Facilitator for the companies. It was looking to sell their products through ICO Crowdsales.

Why Did SEC Take ICOBox to Court?

According to the SEC complaint, ICOBox raised funds to develop a platform for initial coin offerings in 2017. It sold roughly $14.6 million of “ICOS” tokens to over 2,000 investors in an unregistered offering.

The defendants told investors that the offering proceeds would be used to cover the cost of providing ICOBox’s planned services. But they could not afford it. The defendants claimed that ICOBox would be successful due to the efforts of ICOBox’s management team. The team would handle potential digital asset projects and attract “more than 100” customers per month. At the ICOBox offering date, ICOBox still had to support a single token sale until completion.

The defendants actively solicited and attracted investors to ICOBox’s clients’ securities offerings in exchange without registering as or associating with a registered broker-dealer. The defendants are accused of having engaged in unregistered broker activities that violated the federal securities laws. So, the regulator sought injunctive relief, disgorgement with prejudgment interest, and civil money penalties.

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ICOBOX SEC Lawsuit Update: No Reply to the SEC Motion

The US SEC is strengthening its lawsuit against ICOBox and Nikolay Evdokimov. Shortly after filing its application for a default judgment against the defendants, the Commission reinforced its motion with a supplementary declaration.

On 9 January, 2020, the SEC provided the default judgment motion documents via email to the defendants. SEC send it at the last known email address of Evdokimov, neo@icobox.io, with a request for a delivery receipt. The SEC got a notification that the email had been relayed and did not bounce back. However, the SEC did not get any reply to its email from the defendants.

The deadline for defendants to file an opposition or other responses to the SEC’s default judgment was 21 January, 2020. According to FinanceFeeds, the document, submitted to the Court, informs that the defendants did not respond to the SEC’s motion within the time limit set by the Court.

According to the default judgment, ICOBox and Evdokimov are liable for the disgorgement of $ 14,600,000. Moreover, the prejudicial interests are $ 1,459,428, for a total of $ 16,059,429 . According to the SEC, the defendants illegally gained them. The defendants have to pay $ 16,059,429 to the SEC within 14 days after entry of the judgment. Evdokimov has to pay a civil penalty of $ 189,426.

Last week, SEC also accused the Opportunity ICO for misleading statements and making unregistered sales to US investors. The Commission targeted Sergii Grybniak, the founder of the Opportunity ICO, for falsely declaring the project “100% SEC compliant”.

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