In the recent stream of events, ICOBox founder Nikolay Evdokimov was sued by the United States Securities and Exchange Commission (SEC) for illegal securities offering, trading and operating as unregistered brokers. According to a press release, the SEC stated that digital tokens released by ICOBox deem no value and are completely worthless in every regard.
ICOBox Duped Investors by Trading in “Worthless” Tokens
The SEC also exclaimed that Nikolay Evdokimov and ICOBox sold the company’s ICO tokens to over 2000 investors in an unregistered coin offering operative in 2017. The company claimed that the tokens would record a surge in their value on trading and the token holders would be able to exchange them with other tokens for a discount on the ICOBox trading platform.
ICOBox and its founder, Evdokimov violated the registration requirements of the federal law and pre-exposed investors to trade in investments of no market value. The company displayed no information required to make trading and investment decisions. The SEC also stated that ICOBox faked as an unregistered broker by allowing the company to raise around $650 million for its client base.
ICOBox and Evdokimov have been charged with violation of federal laws along with seeking injunctive relief, disgorgement with prejudgment interest and civil money penalties.
The Silver Lining
In other news of hope, Blockstack PBC, a decentralized network of computers, recently raised more than $23 million. This accounts for the first-ever SEC qualified token offering. Muneeb Ali, Blockstack PBC’s co-founder, and CEO along with Ryan Shea spent 10 months and a total of $2 million for token approval from the SEC. Blockstack acquired the green signal for a multi-million public token offering under the regulatory framework A+. Needless to say, the cryptosphere remains a domain of opportunities and fraud with the former far outweighing the latter.