ICO’s have continued to be under a lot of scrutiny. The SEC announced today that it was filing charges for fraud against a $15 million ICO. The Quebec based PlexCorp (Plexcoin), is the defendant in this case. The filing is charging the company and its organizers, Dominic Lacroix and Sabrina Paradis-Royer, for fraud and violating US securities laws. The SEC has also moved the ICO funds into different accounts in hopes they can return it to investors.
This charge showcased the SEC’s Cyber Unit for one of the first times. This arm of the SEC was created in September to keep tabs on ICO’s in particular. The head of the unit, Robert Cohen discussed how this is a textbook example of a fraudulent ICO.
“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,”
This has been just another episode in the saga that has followed PlexCoin. It started in September when Lacroix was held in a contempt of court. This was thanks to charges from the AMF, Quebec’s finance regulators. They claimed Lacroix was soliciting investors for the ICO illegally. Then in November, the AMF fought for Lacroix to be jailed and fined due to his continued actions. It has been another unfortunate chain of events for ICO investors although there remains the possibility for investors to be refunded.