Cryptocurrency News

SEC Sues ICOBox Over Unregistered Token Offering

Securities and Exchange Commission crackdown on unregistered token offerings is in full swing. The securities regulator has sued ICBox and its founder for carrying out a token offering without following the due process.

SEC vs. ICOBox

ICOBox will have to respond to charges over claims it conducted a $14 million securities offering while operating as an unregistered broker. The agency has also sued the company’s founder Nikolay Evdokimov, for selling the company’s ICO tokens to more than 2,000 investors illegally.

The charge sheet states that ICOBox conducted an offering in 2017 with the view of raising funds to develop a platform for carrying out Initial coin offerings. The complaint alleges that the company raised as much as $14.6 million on promising incisors that the value of the tokens they were investing in would increase in value afterward.

SEC also alleges that ICOBox and its proprietors promised investors that they would be able to swap the tokens they invest in at a discount for other tokens promoted on the platform. The fact that the digital asset holder failed to register as a broker, forms the basis of the charges. For that matter, Evdokimov will have to respond to a charge of violating the SEC registration requirements pertaining to the issuance of securities to investors

“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,” said Michele Wein Layne, Regional Director of the Los Angeles Regional Office.

Blockstack SEC Approved Token Offering

As the SEC ramps up charges against ICOBox for conducting unregistered digital assets, offering decentralized computing network Blockstack PBC is fresh from completing a first-ever SEC approved token offering. The blockchain-based startup raised more than $23 million from the offering as more than 4,500 individuals, and entities participated in the offering.

Some of the big investors in the SEC approved token offering included Union Square Ventures Lux Capital, Recruit Holdings as well as Arrington Capital and Frontier Ventures. Blockstack is currently in discussion about the possibility of raising an additional $5 million by targeting international investors. The additional distribution should provide the firm with the much-needed financing for growing its community and network in Asia.

The SEC approved the Blockstack token offering under Regulation A+ that provides startups a way of raising capital from the public.

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Ruchi Gupta

Ruchi Gupta covers various beats from finance to technology and from lifestyle to hobbies. She has an MBA in Finance. Ruchi enjoys writing on celebrities and political news. She likes traveling and exploring places.

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