Cryptocurrencies had a great year in 2021. In this period, we have seen the market go from being classified as a billion-dollar economy into a trillion-dollar economy. Aside from that, cryptocurrencies are gaining visibility in the mainstream world with, for example, El Salvador's adoption of Bitcoin as the official digital currency. As a result, investors are looking for the "new Bitcoin" on the market, hoping to find a great alternative in so-called altcoins. Unfortunately, many traders value an altcoin exclusively…
A court in the US has ruled in favour of the SEC in a case it had filed against ICOBox and its founder cum CEO Nikolay Evdokimov. Reports indicate that The District Court of the Central District of California granted the U.S. SEC’s motion for default judgement against the defendants.
The case first came before the court in September of last year. In its filing, the SEC accused ICOBox of hosting an unregistered securities sale. Further, it alleged that the company acted as an unlicensed securities broker for over 30 token sales.
ICOBox raised $14.6 million during its initial coin offering in 2017. The sale attracted over two thousand unaccredited investors. Evdokimov had at the time claimed that the “ICO” tokens would increase in value once platforms began their full operations.
In addition to the $16 million fine the court slapped on ICOBox, its founder Mr Evdokimov suffered a personal penalty of over $192,000.
ICOBox Ignoring Summons
The SEC chose to file for default judgement against the defendants On Jan 9, after it failed in its several attempts to serve them. The court has the authority to grant the plaintiff’s prayers for default judgement if the defendant fails to appear in court or resound to a summons. This explains the court’s decision in favor of The SEC.
The court proceedings indicated that Mr Evdokimov did not respond to the emails The SEC had sent him. Moreover, he’d relocated from his last known residence immediately after the SEC served his wife with his subpoena in late September. The SEC had also heard that ICOBox’s resident agent in the Cayman Islands had quit, and hadn’t been replaced.