ICOBox Token Sale Platform Charged with Securities Violation by the SEC
The SEC (U.S. Securities and Exchange Commission) recently purported that Nikolay Evdokimov, the founder of ICOBox together with his company violated important security laws in 2017. According to the SEC, the violations occurred during its token sale and the activities that followed thereafter that led to the platform facilitating other ICOs (Initial Coin Offerings).
A press release sent out to the public on Wednesday 18th September 2019 stated that Nikolay managed to raise more than $14 million through the sale of ICO tokens. The tokens in question were allegedly sold to more than two thousand individuals who had been assured that the value of the tokens would start rising when it officially began to trade.
In addition, individuals holding the tokens were informed that they would be in a position to buy other tokens via the ICOBox platform at a reduced rate via their existing ICOS tokens.
The release goes on to add that information obtained from the complainant indicates that the ICOS tokens are, in fact, worthless and do not have any value to their owners.
Information pertaining to the complaint indicates that the platform and its founders had informed the individuals investing in the tokens that the money raised from this sale would go towards covering its operating expenses. This would include helping pay for the costs that would come with the provision of ICOBox’s planned services to digital startups.
It was understood that some of the startups would not be in a position to make upfront payments for the services that they were receiving from ICOBox.
The press release goes on to state that the defendants had claimed that the ICOBox platform would be an instant hit. This, in turn, would mean that its ICOS tokens would also rise in value. The increase in value would be due to the efforts being undertaken by the management team to attract more than a hundred clients per month.
Management efforts would also involve curating the potential attributed to various digital asset ventures. By the time ICOBox was being offered, it had not managed to support any token from start to finish.