US Regulator SEC Freezes Assets of US ICO Scam

Have you invested in PlexCoin? If yes, you might be in trouble – US SEC has stated that PlexCoin is a fraud has frozen the assets of this US ICO Scam.

5 December, AtoZForex The US financial regulator, the US Securities and Exchange Commission (SEC) has made an announcement on its official website. The regulatory body has obtained an emergency asset freeze to stop a rapid-moving Initial Coin Offering (ICO) fraud in the US.

US Regulator SEC Freezes US ICO Scam Assets

The US watchdog reports that the ICO fraud has already raised around $15 million from thousands of investors. The fraudulent project has been accepting funds since August. People behind the project have been promising a 13-fold revenue in less than a month.

Specifically, the US SEC has filed charges against a recidivist Quebec securities law violator, Dominic Lacroix. His company, PlexCorps, has emerged under the regulatory spotlight as well. The US SEC’s complaint has been filed in federal court in New York. The complaint alleges that the violator and his company has promoted and sold securities called PlexCoin online to investors. The criminals have been targeting investors in the US and elsewhere.

Moreover, the SEC announcement states that the criminals have been claiming that investments in PlexCoin would bring 1,354 percent profit in less than 29 days. In relation to the case, the US SEC has also charged the partner of Lacroix, Sabrina Paradis-Royer.

What now for PlexCoin creator?

The official SEC statement reads:

“Today’s charges are the first filed by the SEC’s new Cyber Unit. The unit was created in September to focus the Enforcement Division’s cyber-related expertise on misconduct involving distributed ledger technology and initial coin offerings, the spread of false information through electronic and social media, hacking and threats to trading platforms.”

According to the Chief of the Cyber Unit of SEC, Robert Cohen:

This first Cyber Unit case hits all of the characteristics of a full-fledged cyber scam and is exactly the kind of misconduct the unit will be pursuing. We acted quickly to protect retail investors from this initial coin offering’s false promises.”

The SEC has obtained an emergency court order to freeze the assets of PlexCorps, Lacroix, and Paradis-Royer. In addition, the complaint from the US regulator charges Lacroix, Paradis-Royer, and PlexCorps with breaching the anti-fraud provisions. Lacroix and his company have been charged with violating the registration provision of the U.S. federal securities laws.

Following on this, the SEC complaint seeks permanent injunctions, disgorgement plus interest and penalties. Also, the SEC looks into the officer-and-director bar and a bar from offering digital securities against Lacroix and Paradis-Royer.

Are you aware of any other US ICO Scam? Think we missed something? Let us know in the comments section below.

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