Another First: SEC Filed Emergency Order to Freeze Assets of Fraudulent ICO

The US Securities and Exchange Commission (SEC) today proved how serious they are about prosecuting scam ICOs by filing an emergency asset freeze against PlexCorps. Owners Dominic Lacroix and Sabrina Paradis-Royer were also targeted the by order. The SEC describes Lacroix as “recidivist Quebec securities law violator.”

The scam

According to a press release from the SEC, PlexCorps engaged in an ICO this past August which promised investors in PlexCoin a 1,354 percent return in just 29 days. The ICO raised about $15 mln from “thousands of investors.” The SEC is seeking significant penalties:

“The complaint 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.”

Also a security

The SEC directly referred to PlexCoin as a security, saying:

“Lacroix and PlexCorps marketed and sold securities called PlexCoin on the internet to investors in the US and elsewhere.”

More specifically:

“The SEC’s complaint charges Lacroix, Paradis-Royer and PlexCorps with violating the anti-fraud provisions, and Lacroix and PlexCorps with violating the registration provision, of the US federal securities laws.”

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