Court urges SEC to push for default judgment in action against ICOBox

Maria Nikolova

Failure to file a default judgment motion by January 10, 2020, may result in sanctions, including dismissal for failure to prosecute, Judge Dale S. Fischer warns.

Judge Dale S. Fischer of the California Central District Court has set a deadline for the Securities and Exchange Commission (SEC) to push further with its enforcement action against ICOBox and Nikolay Evdokimov.

Earlier this week, the Judge signed a brief order, noting that default has been entered by the Clerk as to the defendants. However, no motion for default judgment has been filed yet, the Judge noted. The SEC is ordered to file a motion for default judgment on or before January 10, 2020. Failure to file a default judgment motion by that date may result in sanctions, including dismissal for failure to prosecute.

ICOBox, a company claiming to be “Blockchain Growth Promoter and Business Facilitator for companies seeking to sell their products via ICO crowdsales”, and its founder Nikolay Evdokimov are accused of conducting an illegal $14 million securities offering of ICOBox’s digital tokens and of acting as unregistered brokers for other digital asset offerings.

According to the SEC’s complaint, ICOBox raised funds in 2017 to develop a platform for initial coin offerings by selling, in an unregistered offering, roughly $14.6 million of “ICOS” tokens to over 2,000 investors.

According to the regulator, by not registering the ICOS offering, the company deprived investors of meaningful information that would be found in a registration statement that investors could use to assess the company’s prospects. By actively soliciting and attracting investors to ICOBox’s clients’ securities offerings in exchange for transaction-based compensation without registering as or associating with a registered broker-dealer, the defendants are alleged to have engaged in unregistered broker activities that violated the federal securities laws.

The SEC’s complaint charges ICOBox and Evdokimov with violating the registration requirements of the federal securities laws. The regulator seeks injunctive relief, disgorgement with prejudgment interest, and civil money penalties.

Read this next

Digital Assets

Solana-powered game DeFi Land launches Play-and-Earn features

The Play-and-Earn mechanics announcement comes on the heels of a collab between DeFi Land and STEPN. DeFi Land will soon announce chain integrations, an alpha mobile version, and a multichain feature. 

Retail FX

Spotware rolls out Manager’s API for cTrader brokers

Spotware Systems, a technology provider for the electronic trading industry, has released its new Manager’s API for Brokers, providing powerful tools for server-server integration.

Metaverse Gaming NFT

Dubai Museum taps Binance to jump onto NFT bandwagon

Dubai’s Museum of the Future, the $136 million UAE government-sponsored museum that opened a few weeks ago, is joining forces with Binance NFT to roll out a range of digital products on blockchain.

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

<