A federal court has ordered ICOBox to pay a $16 million penalisation to the Securities and Exchange Commission's (SEC) for violating U.S. securities regulation.
On March 5, Judge Dale S. Fischer of the District Court for the Central District of California granted the SEC's movement for default judgment con to the ICO-as-a-service platform and founder and CEO Nikolay Evdokimov.
The SEC first introduced costs con to ICOBox in September 2019, inculpatory the corporate of net hosting an unregistered securities sale. The governor in addition accused the corporate of acting as an unauthorized securities dealer for greater than 30 token gross sales.
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Raising $14.6 million from greater than 2,000 unauthorized buyers in its 2019 ICO, Evdokimov had claimed through the sale that 'ICO' tokens would rise in worth as firms began utilizing the platform.
As a part of the judgment, ICOBox power be fined $16 million and Evdokimov must pay a private penalisation of greater than $192,000.
Default judgments are often granted pro of of a complainant when a suspect has not responded to summons or has unsuccessful to look earlier than the court. The SEC filed a movement for default judgment January 9, after quite few makes an attempt to serve Evdokimov personally.
According to the submitting, Evdokimov didn't return emails and stirred out of his final noted residence "in the middle of the night with two months' rent unpaid" quickly after the SEC had served Evdokimov's partner in late September.
When the SEC tried to serve discover to ICOBox's resident agent inside the Cayman Islands, they had been knowledgeable that they had resigned and had not, apparently, been changed.
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