Thursday, April 9, 2020

Court orders PlexCoin to pay $7 million fine for its illegal ICO

The Takeaway:

New York U.S District Court in its final judgment ordered PlexCoin proprietors to pay $7 million for selling unregistered securities. SEC had filed a complaint against the company in 2017. Court also ordered each proprietor to pay $1 million in civil penalties. Earlier, Block.one paid $24 million in a civil settlement with SEC for its ICO.

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SEC continues to bring down cryptocurrency companies one after another. After SEC’s complaint, Court has ordered PlexCoin to pay $4.56 million in fine. According to US Securities Exchange Commission PlexCoin proprietors, Dominic Lacroix and Sabrina Paradis-Royer raised millions of dollars from the unregistered sales of “PlexCoin” in 2017.

According to the SEC’s complaint, the operations of PlexCorps were based on false and misleading statements to potential and actual investors. The defendants did not deny or admit the allegation made by the SEC. Court has also banned Lacroix and Paradis-Royer from participating in any digital securities offering. 

Proprietors are ordered to disgorge $4,563,468 in ill-gotten gains from the PlexCoin ICO and $348,145 in prejudgment interest. Lacroix and Paradis-Royer also have to pay a $1,000,000 each in civil penalties. Lacroix is permanently banned from serving as an officer or director of a public traded company. 

The final judgment also requires PlexCoin proprietors to forego their rights to the entirety of the investor funds seized by a receiver appointed by the Superior Court of Quebec.

SEC has been continuously battling with cryptocurrency and ICOs. Earlier, Block.one agreed to pay $24 million to settle its ICO case with SEC. Let us know in comments what do you think of SEC’s war on ICOs?

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jesse Kirby
Jesse Kirby
Since his childhood days, Jesse was fond of writing and learning new things. He developed a special interest in bitcoin back in 2011 and started to get deep into the crypto space. After completing his masters degree from Bnos Menachem School, New York, Jesse became a full time writer and crypto analyst.

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