SEC charges token sale platform for illegal USD 14 mln securities offering violations

Thursday 19 September 2019 11:15 CET | News

The Securities and Exchange Commission has alleged that ICOBox violated securities laws with its 2017 token sale and subsequent activity facilitating other initial coin offerings.

The company raised USD 14.6 million by selling ‘ICOS’ tokens to more than 2,000 individuals, and promised customers that the tokens would increase in value once it began trading. In addition, token holders were told that they could purchase other tokens on the ICOBox platform at a discount, using their ICOS tokens.

However, as per the complaint, the ICOS tokens are virtually worthless. Investors were also told that the offering proceeds would be used to cover the cost of providing ICOBox’s planned services to digital asset startups that could not afford them. 

Moreover, ICOBox facilitated the sale of another USD 650 million in token sale through its platform, thus acting as an unregistered broker. The agency is monitoring ICOBox to refund investors with interest, pay civil money penalties, and suffer injunctive relief.

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Keywords: SEC, Token, securities offering, violations, US, ICOBox, the Securities and Exchange Commission, ICO, digital assets, startups, broker, penalties, trading
Countries: World

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