US SEC Goes After ICOBox Token Sale Platform
Years after ICOBox touted and curated ICO projects, the US Securities and Exchange Commission finally caught up, opening a lawsuit for offering unregistered securities.
The US Securities and Exchange Commission took after ICOBox, a hub for token offerings that operated since 2017. The US SEC opened a legal case against ICOBox for selling its own tokens, as well as hawking other digital assets that may be considered unregistered securities.
“By ignoring the registration requirements of the federal securities laws, ICOBox and Evdokimov exposed investors to investments, which are now virtually worthless, without providing information that is critical to making informed investment decisions,” said Michele Wein Layne, Regional Director of the Los Angeles Regional Office.
ICOBox co-founder Nikolay Evdokimov was also called as a defendant. Evdokimov left the day-to-day operations of the company, though keeping a stake. He has been known for participating in other crypto-based projects of dubious reputation. The ICOBox project discontinued its ICOS program as of March 2019.
ICOBox was one of the chief sources of data and token profiles. But after years in the industry and millions of sales made, the SEC tightened its grip on projects and now, on side platforms offering ICO services.
The project was active in the US and had a branch specifically targeting the Russian-speaking market. ICOs remained highly active in Russia, with fewer restrictions. But as of 2018, ICOBox was already affected by the drop in ICOs and public interest.
Based on the estimations of SEC, ICOBox sold $14 million’s worth of ICOS tokens, attracting around 2,000 investors. The chief promise of ICOS was that they would be valuable for buying into upcoming token sales. Afterward, ICOBox placed tokens for as much as $650 million.
The ICOS token is also untraded, with the last known price of $2.41. During the ICO in the summer of 2017, ICOS was sold at the extraordinary price of 0.012 BTC. The token was supposed to give access to future ICOs with a discount of up to 75%, and holders could also vote for projects to have a token sale organized through ICOBox. The model of ICOBox was somewhat similar to that of KickICO, which used its native token to fund other projects.