Categories: ICO

US SEC Seeks Sanctions Against Individuals Behind Alleged Crypto Scam PlexCoin

Click here to view original web page at cointelegraph.com

The U.S. Securities and Exchange Commission (SEC) is seeking sanctions against the individuals behind the allegedly fraudulent Initial Coin Offering (ICO) known as PlexCoin, Finance Feeds reports September 26.

The SEC has been involved in ongoing court proceedings against the owners of the associated firm PlexCorps — Dominic Lacroix and Sabrina Paradis-Royer — at the New York Eastern District Court since December 2017. The SEC’s initial complaint had charged the pair with violating securities law in respect to PlexCorps’ PlexCoin ICO in August 2017.

The complaint had accused Lacroix — whom it called “a recidivist securities law violator in Canada” — and his partner of “misappropriating” investor funds that were “illegally” raised in a misleading, deceptive, and unregistered securities offering. The PlexCoin ICO is alleged to have raised $15 million from “thousands of investors,” reportedly promising investors a 1,354 percent return in just 29 days.

In the ensuing months, the regulator has twice sued Lacroix for securities fraud and issued two emergency asset freeze orders against him.

According to the SEC, the duo have continued to ignore a succession of Court orders concerning the “discovery, accounting [...] and repatriation of assets.” The regulator therefore chose to file a motion to compel and a motion for discovery sanctions against the duo yesterday, Sept. 25.

The ignored injunctions are said to have included a court order from December 2017 that enjoined the defendants to produce — within three business days — “a sworn verified written accounting” reflecting the amounts and locations of investor assets raised from the PlexCoin ICO, and to “immediately” transfer to the registry of the Court all assets “derived from PlexCoin or PlexCoin Tokens or PlexCorps”.

Despite an extension of the deadline and further injunctions to provide the SEC with “a full list of bank and brokerage accounts [...] and any blockchain addresses through which investor funds were solicited or received,” Lacroix and Paradis-Royer have reportedly failed to comply with any of these orders. They are further reported to have ignored a court order from this August, which demanded further accounting documents pertaining to investor funds as well as the defendants’ assets.

The SEC has this week argued that the defendants demonstrate no intention of “participating meaningfully” in the ongoing litigation, and could potentially employ a deferral strategy “indefinitely, including potentially after the entry of a preliminary injunction.” The SEC has reportedly noted that such a persistent failure to comply with court demands could further facilitate the pair’s potential dissipation of investor assets.

In a recent high-profile development for the crypto regulatory landscape in the U.S., a New York federal judge has ruled this month that securities laws are applicable for dealing with crypto fraud allegations.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama
Tags: coin crypto initial invest offering

Recent Posts

  • Bitcoin Business

Cardano {ADA} falters, Foundation member scheduled to speak at an event by the Bitcoin {BTC} Association

Cardano is ranked at #12, right after Stellar Lumens and above Monero on coinmarketcap. According to the latest available data,… Read More

53 mins ago
  • Bitcoin Business

How Big Hydro Power Partners With Bitcoin Miners to Prevent Energy Waste

We are often told that the verification of bitcoin transactions eats a lot of energy. The largely inaccurate comparison to… Read More

53 mins ago
  • Bitcoin Business

Bitcoin Mining Hotspot Iran Drafts Electricity Tariffs for Crypto Miners

Bitcoin mining is about to become mainstream and legal in Iran | Source: Lars Hagberg / AFP The government of… Read More

54 mins ago
  • Bitcoin Business

Ideanomics: Simply Adding Blockchain And Fintech Won’t Make It Successful

SummaryI believe that IDEX is a company without a clear identity and vision.IDEX's transition towards blockchain and fintech is bewildering.Currently,… Read More

54 mins ago
  • Bitcoin Business

Bitcoin’s Catch-22 Will Keep It From Spurring a Monetary Revolution

Over the past couple of years, there have been a number of fast-growing industries that have caught the attention of… Read More

54 mins ago
  • Bitcoin Business

Post-Halving Bitcoin to Hit $100,000 in 2020? It’s Unlikely, Data Shows

In around 300 days, Bitcoin (BTC) will experience what is known as a “halving” or “halvening”. This event, which occurs… Read More

54 mins ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More