Cryptocurrency Hits the News Again with Accusations of Fraud


Dated on December 1st, 2017, the United States Securities and Exchange Commission has made accusations against PlexCorp, Sabrina Paradis-Royer, and Dominic Lacroix. The firm based out of Quebec, Canada, primarily deals with the cryptocurrency PlexCoin.

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Robert Cohen, head of the U.S. SEC Cyber Unit has stated that they acted quickly with their charges to protect retail investors from investing in a coin that is offering false promises. The SEC is charging PlexCorp with acts of fraud, misinformation and violating United States security laws. The securities regulator has claimed that thousands of investors have lost an approximate $15 million USD in the initial PlexCoin offering.

The Cyber Unit of the United States Securities and Exchange Commission was created back in September and is still a new unit. This is the first filing that they’ve made since being assigned with the task of closely monitoring crypto coin offerings that have become increasingly popular since the value of Bitcoin has soared drastically. With the amount of value that Bitcoin has and its limited quantities, various other coin offerings have been popping up as a way to get a piece of the action, though suspicions are arising.

Robert Cohen and his unit have made the claim that both Lacroix and Paradis-Royer have made false statements and provided unrealistic expectations to possible investors in an attempt to gain their funding. In order to protect investors, the unit filed for an emergency court order to freeze all assets of Quebec-based PlexCorp, and the two individuals at the head of the allegations.

Back in July of 2017, the Financial Markets Administrative Tribunal of Quebec also banned both PlexCorp and Dominic Lacroix from all investment activities that would target Quebec residents. Additionally, Quebec’s Superior Court declared Lacroix and PlexCorp in direct contempt of court, and found that the defendants continued to market and sell their investments in PlexCorp despite the ban that was placed on them in July.


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Cryptocurrency Hits the News Again with Accusations of Fraud

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