US SEC Sues ICOBox For Conducting An Illegal $14M Securities Offering

It seems like the United States Security and Exchange Commission (SEC) has a lot on its hands right now. As many best cryptocurrency news sites report, there are lawsuits being prepared by the regulatory authority every day. In the recent news, we can see that US SEC sues ICOBox for conducting an illegal securities offering worth $14 million and acting as unregistered brokers.

As a press release shared on September 18 showed, the US SEC claims that ICOBox and Evdokimov (the founder) sold the firm’s ICO tokens to more than 2,000 investors in an unregistered coin offering back in 2017.

The US SEC sues ICOBox and Evdokimov but also goes on to say that the defendants claimed that there would be a price increase in the tokens upon trading – and that the token holders would be able to swap them for other tokens at discount. The SEC Claims that the ICO tokens are now worthless, stating the following:

“By ignoring the registration requirements of the federal securities laws, ICOBox and Evdokimov exposed investors to investments, which are now virtually worthless, without providing information that is critical to making informed investment decisions.”

As we can also see in the latest cryptocurrency news, the US SEC and its complaint also states that ICOBox acted as an unregistered broker by facilitating ICOs which raised another $650 million for dozens of clients. The commission decided to charge ICOBox and Evdokimov with violating federal securities laws and is actively seeking injunctive relief, disgorgement with prejudgment interest and civil money penalties.

Aside from the fact that the US SEC sues ICOBox, we recently reported that Blockstack PBC, a decentralized computing network which recently announced that it managed to raise more than $23 million in the first token offering which was approved by the SEC. The team behind Blockstack apparently spent around $2 million to gain approval from the SEC in advance of their token offering.

Meanwhile, the coming altcoin news show that there are losses on the market. Bitcoin (BTC) was the first cryptocurrency to go in the red as it lost more than $500 in minutes and pulled a lot of altcoins alongside with it on the market. For what we know now, the recent updates show that the losses are extending.