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PlexCoin ICO: Update On The SEC Lawsuit

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FinanceFeeds today reports that the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against the ICO promotors Dominic LACROIX and Sabrina PARADIS-ROYER, and their PlexCoin ICO continues at the New York Eastern District Court. The SEC alleged that the defendants sold their tokens as unregistered securities and spent thousands of dollars on numerous Facebook advertisements that directly targeted and reached users in the United States and those ads promoted the PlexCoin ICO as an investment opportunity. Moreover, the SEC found evidence that LAXROIX and PARADIS-ROYER misappropriated some of the PlexCoin ICO funds for personal use.

ICO Scam PlexCoin

In December 2017, the SEC announced that it has frozen the assets of the cryptocurrency startup PlexCorps accused of fraudulently selling up to $15 million tokens. The SEC filed charges against Dominic Lacroix, and his company, PlexCorps. The Commission’s complaint 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.

The charges were the first filed by the SEC’s new Cyber Unit established in September 2018 to focus the Enforcement Division’s cyber-related expertise on misconduct involving distributed ledger technology and ICOs, the spread of false information through electronic and social media, hacking and threats to trading platforms.

The New PlexCorps Court Order

On Friday, January 4, 2019, Magistrate Judge Robert M. Levy signed an order directing the defendants to produce disclosures in a timely manner.

The defendants were required to make their initial disclosures by December 17, 2018. When the defendants failed to do so, the plaintiff – the Securities and Exchange Commission (SEC) moved to compel, asking the court to require defendants to produce their initial disclosures immediately. Defendants failed to respond or provide a reason to delay their disclosures. Accordingly, defendants are ordered to complete their initial disclosures by January 11, 2019. Failure to comply may result in sanctions.

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