In September 2019, the U.S. Securities and Exchange Commission sued ICOBox and its founder Nikolay Evdokimov for conducting an illegal $14 million Initial Coin Offering (ICO) in 2017. According to the SEC the issued crypto-tokens would have been securities and ICOBos acted as an unregistered broker for digital asset offerings. The SEC is seeking more than $16 million in disgorgement plus civil penalties from ICOBox and its founder. ICOBox claimed to be a “Blockchain Growth Promoter and Business Facilitator for companies seeking to sell their products via ICO crowdsales.”
On January 9, 2020, the SEC submitted a new set of documents, including a motion for default judgment against ICOBox and Nikolay Evdokimov. The Californian resident Evdokimov, 37, According to the proposed default judgment, ICOBox and Evdokimov are jointly founded ICOBox as a Cayman Islands company in June 2017. The regulator holds them liable for disgorgement of $14,600,000, representing ill-gotten gains obtained as a result of the conduct alleged in the SEC’s Complaint, plus prejudgment interest thereon in the amount of $1,459,428.99, for a total of $16,059,429.99. To be paid to the SEC within 14 days if and when a respective court order is entered. Additionally, Evdokimov shall be ordered to pay a civil penalty in the amount of $189,426.