So carry on due diligence!īirth of a New Service: The Brand New ICOBox Once again, when it comes to ICOs in the US, remember that the SEC has repeated numerous times that virtual assets should comply with US securities laws and the 1933 Securities Act. Make sure the team is reputable and compliant with all the local rules and regulations. Why? Because researching ICOs is crucial to help you limit losses as you risk losing your entire capital. While spotting fraud years ago might have been difficult, the story of ICOBox and the report by the SEC that took years to reach an effective ruling of the court are relevant today.
Given that regulations are still catching up with technologies, the SEC keeps seeking clarity and has warned many projects, including Airforx and Gladius Network, that it would treat ICOs as unregistered securities sales. Here we should mention that ICOBox is not the only company sued for fraud.
#Iconbox script registration#
So it’s no surprise the SEC sought justice.Īs expert Michel Wein Layne said, "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." True, ICOBox's digital tokens the company was promoting, called ICOS tokens, are worthless now. Without digging into legal technicalities, ICOBox was selling tokens as unregistered securities to unaccredited investors and breaching securities laws. Why Was ICOBox Sued by the SEC in the First Place? The US Securities and Exchange Commission (SEC) caught the report, and more trouble loomed for the team. To make matters worse, the company failed to conduct proper registration as a broker while selling almost valueless ICO projects to its customers.
ICOBox's CEO, Nick Evdokimov, involved the company in offering illegal securities to investors. In its quest to produce and market companies with great features and products, the company grew its employees, signing over 20 people… before taking the wrong path.
ICOBox was promoted as "the first and the biggest new generation blockchain growth promoter and Business Facilitator for companies seeking to sell their products via ICO crowd sales."įounded in 2017 with headquarters in Vancouver, Canada, the former ICOBox website was launched by Nickolay Evdokimov, Daria Generalova, Mike Raitsyn, and Anar Babaev, intending to scale the effectiveness of blockchain technologies.
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