SEC Aims To Help Victims of Plexcoin ICO Scam

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SEC Aims To Help Victims of Plexcoin ICO Scam

  • The independent federal US agency, Securities and Exchange Commission recently had been investigating the Plexcoin ICO scam.
  • The firm claimed that it’s investors a “13 fold profit”, which ultimately led to a $15 million accumulation with the company.
  • The SEC has also been checking the legitimacy of the Proposed Plan of distributing the cumulative in one go rather than other.

The independent federal US agency, Securities and Exchange Commission, or SEC recently had been investigating the Plexcoin ICO scam. The scam was such that the open-source cryptocurrency, Plexcoin, had gained from actual investors by claiming wrong statements.

The firm claimed that it’s investors a “13 fold profit”, which ultimately led to a $15 million accumulation with the company. Now, as the matter has caught and as the proceedings follow, the market regulator has imposed a penalty for the same. 

Plexcoin ICO has been penalized with $4.56 million with an additional $350,000 by the market regulator, which has also fined the founders of the company.

Dominic Lacroix and his partner Sabrina Paradis-Royer have been penalized with $1 million each and have to pay this amount back to investors. For the very same reason, the SEC has seized the $1.4 million from the company and has appealed to the Court to pay it back to the US investors. 

According to the market regulator, the SEC plans to distribute the money amongst the righteous and the harmed investors via Receiver and all in one go. SEC also had been very keen on the legal proceedings of the case at the Canadian Court, for it has always suggested in the decision making.

The SEC has also pointed out a flaw in distributing the amount by any third-party receiver. It mentions that the fraudulent which has taken place is worth more than $8 million, but if it paid via the third party, then it would be complicated to pay even $5 million to the investors. 

The filing said,

“Reduction of administrative fees is important to maximize the distribution to harmed investors and is a primary reason the SEC is considering a single, coordinated distribution.” 

The SEC has also been checking the legitimacy of the Proposed Plan of distributing the cumulative in one go rather than other, separate distribution in the US. As of now, as the proceedings continue, there is hope for more of the asset to be seized for the harmed investors, and the SEC is trying its level best to help those who have caught up in the scam, in their country. 

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