Court’s Verdict Against ICOBox’s Founder Nikolay Evdokimov, Ordered To Pay $16m In Disgorgement

Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.
  • A verdict against the lawsuit targeting ICOBox and its founder Nikolay Evdokimov has been issued by Judge Dale S. Fischer of the California Central District Court today.
  • As per the court verdict, ICOBox and Evdokimov are jointly and severally liable for disgorgement of $14,600,000.
  • The defendants are thus suspected to have involved in unregistered broker activities that ultimately breached the federal securities laws.

The California Central District Court has approved a motion for default judgment against ICOBox and its founder Nikolay Evdokimov.

A verdict against the lawsuit targeting ICOBox and its founder Nikolay Evdokimov has been issued by Judge Dale S. Fischer of the California Central District Court today.

The action was carried by the Securities and Exchange Commission (SEC) which alleged the defendants for conducting an illegal offering of $14 million ICOBox’s digital tokens, and processing as unauthorized brokers for the digital asset offerings.

What were the allegations?

Last week, the honorable judge has granted the SEC motion for default judgment against the defendants ICOBox and Evdokimov. As per the report earlier this year, the SEC postulated more than $16m in disgorgement from the defendants.

As per the court verdict, ICOBox and Evdokimov are jointly and severally liable for disgorgement of $14,600,000.

As a result of the conduct alleged in the SEC’s complaint, ICOBox and Evdokimov mutually represented ill-gotten gains plus prejudgment interest thereon in the amount of $1,459,428.99, making it a total of $16,059,429.99.

Additionally, ICOBox and Evdokimov, and their officers, employees, agents, attorneys, servants, subsidiaries and affiliates, and those persons in active concert or contribution with any of them, are permanently restrained and enjoined from making use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell security through the use or medium of any prospectus or otherwise.

Per the violation of Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”), 15 U.S.C. § 78o(b), the defendants are also permanently restrained and enjoined from, directly or indirectly, unless they are registered with the SEC.

What was the issue?

According to SEC complaint, in 2017 ICOBox raised funds to develop a platform for ICO by trading in an unauthorized offering of approximately $14.6 million of “ICOS” tokens to more than 2,000 investors.

The SEC alleged that by non-registering the ICOS offerings, the company devoid traders of significant information that would be found in a registration statement that the former could use to measure the company’s projections.

Without registering or associating with a registered broker-dealer, the defendants were vigorously soliciting and attracting the investors to ICOBox’s clients’ securities offerings in return for transaction-based compensation.

The defendants are thus suspected to have involved in unregistered broker activities that ultimately breached the federal securities laws.

We Recomaned

Top Rated Trading Platforms

Top Rated Cryptocurrency Exchange

Partners