SEC Cyber Unit freezes assets of PlexCorps on $15 million ICO scam allegations

4 December 2017

PlexCorps The Cyber Unit of the U.S. Securities Exchange Commission imposed its first charges on the firm dealing with the cryptocurrencies and obtained a court order to freeze its assets on the grounds of the firm’s violation of the anti-fraud regulations. The unit sought to stop the initial coin offering (ICO) launched by PlexCorps and its founder Dominic Lacroix, which resulted in raising $15 million from investors.

The commission’s new cybercrime division charged Dominic Lacroix and the company marketing its securities under the name of PlexCoin to the investors, with a crime related to defrauding and misleading customers about the future profits returning on investments. Starting this August, PlexCorps has collected money for its PlexCoin project to the total amount of $15 million from the Internet users promising them high profits at the rate of 1,354% return within just 29 days.

The regulator filed fraud charges against Lacroix, as well as Sabrina Paradis-Royer and PlexCops and separately charged Lacroix and PlexCorps with the violation of the registration regulations of the US federal securities legislation. Besides, the Cyber Unit obtained an emergency judgment from the court to freeze the assets of PlexCorps and the aforementioned individuals.

Robert Cohen, speaking for the Cyber Unit, noted that this is the first case examined by the division and it features all characteristics of a full-fledged cyber scam, as it is a perfect example of misconduct and false promises given to the investors.

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