The SEC has won a lawsuit against Isobox in the case of unregistered sale of tokens

The SEC won a court case against The Russian icobox project and its founder Nikolay Evdokimov. The losing party must pay $16 million in fines and compensation for illegally obtained funds.

The us securities and exchange Commission (SEC) sued ICOBox in September 2019, and in January demanded to recover $16 million from the project. According to the statement, ICOBox organized several token sales that were unregistered securities.

At the same time, ICOBox not only sold its own ICOS token, but also helped raise up to $650 million for more than 30 clients. The ICOS sale alone raised more than $14.5 million between August 15 and September 15, 2017. The court ruled that ICOBox must pay $16 million for working as an unregistered broker.

The startup’s founder, Nikolay Evdokimov, received a warning from the SEC for overly aggressive promotion of the project. However, at the end of 2018, he left ICOBox, and the project was soon closed. Currently, the ICOBox site is not working, and neither Evdokimov nor other representatives of the team appeared in court for the last hearing.

“After the transfer of the case to the court, the ICOBox project left its offices, and the rent for several months remained unpaid. Attempts to send requests to Evdokimov’s last known email address were unsuccessful, ” the SEC said.

The Commission also noted that there is no evidence of ICOBox registration, and claims of 150 employees worldwide remain unverified. Moreover, when promoting the ICOS token, the company distributed information that misleads investors.

Note that the ICOS token originally cost more than $55, but it lost most of its value before trading ceased in November 2019 – when the price of the token fell to $2.41.