SEC Seeks Sanctions Against Plexcoin Organizers

The US Securities and Exchange Commission (SEC) is looking to impose sanctions on the perpetrators behind the scamming ICO known as Plexcoin. Since December 2017, the SEC has been involved in a lawsuit against PlexCorps, the company that allegedly organized the Plexcoin token crowdsale. The case, in which the agency charged Dominic Lacroix and Sabrina Paradis-Royer, the proprietors of PlexCorps, is currently ongoing at the New York Eastern District Court.

The charges levied against Lacroix labeled him as recidivist who had violated securities regulations in the neighboring Canada. Together with Sabrina, they were accused of misappropriating investor funds that were raised using fraudulent and unlicensed token sales. Reportedly, the Plexcoin token sale amassed a total of $15 million by convincing traders that they would get a ROI of 1,359% in just four weeks. The SEC has also pursued further charges on securities fraud against Lacroix and issued orders for the freezing of his assets.

According to the SEC, the two have continuously ignored court orders obligating them to repatriate assets acquired from the contentious crowdsale. As a result, the regulatory authority decided to file a motion to compel and a motion for discovery sanctions against Lacroix and Sabrina. Apparently, the injunctions required the duo to provide a sworn and verified account that showed the amounts and locations of funds raised during the Plexcoin ICO. Moreover, these assets were to be transferred to the Court's registry.

Although the deadlines have been extended and more injunctions issued to the defendants, they have failed to comply with the orders. In August, the court ordered the two to provide documents showing their assets as well as the investors funds from the Plexcoin project. Consequently, the SEC has stated that the accused are likely to dissipate investor funds.

In what many regard as a landmark ruling, a New York judge recently ruled that securities laws are applicable to instances of alleges cryptocurrency fraud.

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