SEC halts the ICO of PlexCoin for alleged fraud
The SEC filed charges against PlexCorps founded by Dominic Lacroix, a Canadian resident who already violated the securities law previously, and Sabrina Paradis-Royer. In its complaint, the SEC alleges violation of the anti-fraud and registration provisions of the U.S. securities law.
According to the SEC, PlexCorps raised $15 million conducting an ICO of the PlexCoin and promising a 1,354 percent profit yield in less than 29 days.
In its complaint, the SEC seeks permanent injunctions, disgorgement plus interest and penalties as well as a permanent bar for Dominic Lacroix and Sabrina Paradis-Royer to serve as officers or directors of a public company or offering digital securities in the future. As part of the proceedings, the SEC sought and obtained an emergency freeze of assets of PlexCorps, Dominic Lacroix and Sabrina Paradis-Royer.
It is important to note that these are the first charges brought by the recently formed SEC Cyber Unit, which focuses on the violations of the U.S. securities law made over Internet. Because cryptocurrency transactions are performed with the use of Internet, the Cyber Unit oversees ICOs, trading of securities tokens, and other securities related matters in connection with the violation of the U.S. securities law.