SEC Lawsuit for PlexCoin $400m ICO Fraud

SEC Lawsuit for PlexCoin $400m ICO Fraud

PlexCoin joins the growing list of ICOs being pursued in the courts by the SEC. The ICO venture which had been seeking up to $400 million from contributors saw its project leads, Dominic Lacroix and Sabrina Paradis-Royer – both believed to be Canadian citizens – made the target of a new lawsuit filed on Friday December 1. 

Lacroix is understood to have been pursued previously on successful charges of fraud before the Quebec Financial Markets Administrative Tribunal.  

Cloak of Anonymity

As of writing, the project’s token sale is still being hosted online with its slick website presentation alone appearing to have been enough to successfully dupe a large number of contributors.

PlexCoin website fraud

The ICO had sold itself as a cryptocurrency which offered anonymous, blockchain-based banking services, and had been seeking up to $400 million in funds from contributors as part of its hard cap. “More than a credit card, it represents peace of mind,” its website stated. 

Despite having been covered in a cloak of anonymity  from its very beginning – no single member of the team is listed anywhere on its website which also failed to include a white-paper – the project is thought nonetheless to have managed to gather $15 million in funds along with 10k likes on Facebook. 

SEC Setting Example

It had previously been reported that the SEC were compiling a list of prominent ICOs which were considered to be in breach securities legislation despite some legal experts claiming that the current regulatory framework may remain inadequate before the courts in relation to the ICO fundraising model. 

The SEC had declared in July of this year that some ICOs qualified as securities and would therefore fell under its remit. Since the July declaration, a list of both fraudulent and failing ICOs have become a target for the regulator with several ongoing lawsuits being pursued again the Tezos and DAO ICOs amongst others.