SEC Emergency Action Halts PlexCoin ICO Scam

 

PlexCoin claimed to be the next decentralized worldwide cryptocurrency, based on the Ethereum structure. Its mission was to broaden the possibilities of uses and to increase the number of users by simplifying the process of managing cryptocurrency to the maximum.

What is a PlexCoin?

The PlexCoin is a cryptocurrency (private internet currency), that has a value based on the current market. In other words, PlexCoin is an entirely decentralized open source worldwide currency, without any central authority. This means that your transactions will not be managed or verified by any traditional banking institution. Users can now control their own finances privately.

In comparison to Bitcoin (45 minutes), the transactions (deposit, withdrawal, purchase, sale, transfer) of PlexCoin are confirmed faster (30 seconds) and they have increased storage efficiency.

The PlexCoin’s new revolutionary operating structure is safer and much easier to use than any other current cryptocurrency.

This implies a huge success for PlexCoin as soon as it launches.

The Securities and Exchange Commission today announced it obtained an emergency asset freeze to halt a fast-moving Initial Coin Offering (ICO) fraud that raised up to $15 million from thousands of investors since August by falsely promising a 13-fold profit in less than a month.

The SEC filed charges against a recidivist Quebec securities law violator, Dominic Lacroix, and his company, PlexCorps. The Commission’s complaint, filed in federal court in Brooklyn, New York, alleges that Lacroix and PlexCorps marketed and sold securities called PlexCoin on the internet to investors in the U.S. and elsewhere, claiming that investments in PlexCoin would yield a 1,354 percent profit in less than 29 days. The SEC also charged Lacroix’s partner, Sabrina Paradis-Royer, in connection with the scheme.

Today’s charges are the first filed by the SEC’s new Cyber Unit. The unit was created in September to focus the Enforcement Division’s cyber-related expertise on misconduct involving distributed ledger technology and initial coin offerings, the spread of false information through electronic and social media, hacking and threats to trading platforms.

“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,” said Robert Cohen, Chief of the Cyber Unit. “We acted quickly to protect retail investors from this initial coin offering’s false promises.”

Based on its filing, the SEC obtained an emergency court order to freeze the assets of PlexCorps, Lacroix, and Paradis-Royer.

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 U.S. federal securities laws. 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. – Source SEC