The United States Securities and Exchange Commission (SEC) asked the court for permission to distribute $ 1.4 million collected from the fraudulent PlexCoin ICO to its victims’ investors. SEC settled its charges with the company and its founders for $ 7 million.
03 January, 2020 | AtoZ Markets – About three months after the US SEC obtained a final judgment against the fraudulent ICO scheme PlexCorps, aka PlexCoin, and its owners. Dominic Lacroix and Sabrina Paradis-Royer are PlexCoin’s owner. The regulator has filed a letter providing an update.
PlexCoin ICO Victims May Receive Over $1.4 Million From SEC
This letter came after the market regulator settled the charges against the company. It happened by imposing a penalty of $ 4.56 million and an additional $ 350,000. The regulator also imposes a fine of 1 million dollars each to founder Dominic Lacroix and his partner Sabrina Paradis-Royer.
According to the court document, the regulator has seized $ 1.4 million of the company’s assets. That belonged to American investors and is planning to reimburse the victims in a single distribution. The filing stated:
“Following the final judgment of this case (DE 116), the court directed the entities to the turnover assets previously belonging to Lacroix. It was resulting in the SEC collecting approximately $ 1.4 million in US assets”.
Canadian Authorities after the ICO
Meanwhile, other ICO-related legal proceedings are underway in Canada. And the court has already appointed a receiver to collect the proceeds of the token sale. The US SEC is also an interested party in Canadian legal proceedings. The regulator said:
“The SEC is considering recommending to this court that US assets be sent to the receiver for a single distribution to injured investors. Before making such a recommendation, the SEC ensures that the proposed plan and the claims process are fair and reasonable. And investors would be better served by one distribution rather than by a separate second distribution in the United States “.
The SEC also noted that the total losses of the ICO victims exceed $ 8 million. However, if the SEC hands over the distribution process to the third-party receiver, it will take less than $ 5 million to distribute. The filing also added:
“Reducing administrative costs is important to maximize distribution to harmed investors. And it is one of the main reasons the SEC is considering a single, coordinated distribution.”
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