Alleged PlexCoin ICO scam on SEC radar

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PlexCoin has attracted the attention of United States Securities and Exchanges Commission (SEC) due to alleged fraud with the SEC obtained an emergency asset freeze order against Dominic Lacroix, and his company, PlexCorps.

The social media is abuzz with alleged scam by PlexCoin ICO where users have been detailing a number of red flags and how the ICO is a scam. The SEC obtained the asset freeze order against the alleged fraudsters for engaging in an alleged fraudulent ICO.

Despite offering nothing innovative, PlexCoin managed to raise a whopping $15 million from thousands of investors since August. The ICO claims to offer a 13-fold profit in less than a month and that’s what has triggered alarm bells across the ICO scene.

The action was taken by SEC’s new Cyber Unit with SEC further charging Lacroix’s partner, Sabrina Paradis-Royer, in connection with the scheme. SEC alleges that Lacroix, Paradis-Royer and PlexCorps violated the anti-fraud provisions, and Lacroix and PlexCorps violated the registration provision, of the U.S. federal securities laws.

According to the regulator, PlexCorps marketed and sold securities called PlexCoin on the internet to investors in the U.S. and elsewhere, claiming that investments in PlexCoin would yield a 1,354 percent profit in less than 29 days.

Plexcoin does not seem to have marketed itself as offering anything innovative, with the project stating that it is just a currency based on the Ethereum network. From a quick glance, it does not seem to provide any differentiating reason why anyone should invest in their ICO, but promises were seemingly made that token amounts would just increase as well as suggestions of 1,000{354c91d6c770f51e2d958086b609baaa0554bba184b320adf9922a4fa7c1531f} profits.

While Canada’s Autorité des marchés financiers (the “AMF”), issued an order against Plexcoin back in July, but the ICO seemingly still proceeded, suggesting potential difficulties with enforcing the order as the project’s website remains live at the time of writing.

Plexcoin is currently listed on Coinmarketcap where an actual market cap is not shown, but the coin handled trading volumes of nearly $20,000 in the past 24 hours.

SEC has obtained an emergency court order to freeze the assets of PlexCorps, Lacroix, and Paradis-Royer and further seeks “permanent injunctions, disgorgement plus interest and penalties. For Lacroix, the SEC also seeks an officer-and-director bar and a bar from offering digital securities against Lacroix and Paradis-Royer.”

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