SEC accused organizers of ICO PlexCoin of fraud
The US Securities and Exchange Commission (SEC) has received an emergency freeze order for the assets of Dominique Lacroix and his company PlexCorps. The SEC motivated its decision by the fact that Lacroix organized a fraudulent ICO PlexCoin and raised “up to $ 15 million with the participation of thousands of investors since August this year, knowingly falsely promising 13 times profitability in less than one month.”.
The claim was made by the SEC cyber division, which accuses Lacroix, his partner Sabrina Paradis-Royer and PlexCorps of violating the requirements of anti-fraud laws and separately Lacroix and PlexCorps of violating registration requirements enshrined in federal securities laws.
“PlexCorps has been promoting and selling a security called PlexCoin online to investors in the US and abroad, claiming that an investment in PlexCoin will bring them 1,354% in less than 29 days,” the regulator explained..
The accusations against PlexCoin have been around for a long time. In July, the Financial Markets Authority of Canada issued an order against PlexCoin, which, however, did not stop Lacroix from conducting an ICO..
“The first case of the cyber unit meets all the characteristics of full-scale cyber fraud and is a prime example of the misconduct that the unit will pursue in the future,” said the head of the cyber unit Robert Cohen. “We acted quickly to protect individual investors from the fake promises of this ICO”.
The SEC has received an urgent court order to freeze the assets of PlexCorps, Lacroix and Paradis-Royer and is going to receive a final decision, according to which the perpetrators will be required to return the misappropriated funds, plus pay interest and fines.
Plexcoin does not really stand out against the background of countless other similar projects. The organizers have stated directly that Plexcoin is a regular Ethereum token. At the same time, they really did promise super-high returns for no reason. However, these promises helped them raise millions of dollars and lift their own token by 700%, according to a Facebook post..