The U.S. market regulator, the United States Securities Exchange Commission (SEC), has filed a demand for a default judgement in the case against the token sale platform ICOBox and its founder, Nikolay Evdokimov, Cointelegraph reports on January 11th.
The U.S. regulator has sued ICOBox and Evdokimov on the charge of running an unregistered securities offering exceeding more than USD14.6M in digital assets as well as acting as unregistered securities brokers in 2017. In addition to the amount calculated to be gained from the securities offering, the company is held liable for a further USD1.4M of prejudgement interest and Evdokimov is personally ordered to pay a civil penalty of little more than USD189k.
The U.S. market regulator has become infamous due to its scrutiny when it comes to unregistered securities offerings. While several companies have tried to fight its accusations in the past, they've not ended well, which can be best seen in the example of the Canadian messaging service provider Kik, which has been pushed into bankruptcy by the prolonged legal battle with the SEC. Considering that, most companies opt for a settlement with SEC, bending to its demands, and ICOBox is likely to follow that path if they can close its financial construction, lest they risk further actions from SEC: