SEC gets an emergency court order to freeze fraudulent ICO assets

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Recently, SEC moved to the emergency court in order to gain order to freeze the assets of a fraudulent ICO. The ICO goes by the name of PlexCoin. This clearly indicates that SEC is closely monitoring the ICO market as well.

Dominic Lacroix is the owner of the company. Previously as well, he was sued for fraud related to securities. In December 2017 his assets were frozen. The order was unsealed on June 18.

Fraud with the ICO investors:

According to the ICO, he has been consistently stealing from the ICO investors. With the help of secret accounts, he is moving the assets of the company. Also, he is moving the amount of money which has been raised by the ICO as well. The SEC is currently not just seeking interest but also penalties as well as permanent injunctions. Also, they are seeking about on him from dealing in any kind of security is whether it is digital or in any other form in the future.

When he had conducted the ICO offering in August of last year, then also SEC had launched a complaint against him. He had promised the investors to get the return of 1354% in just 29 days. As a result, the total amount of money which he raised was $ 15 million. Thousands of different investors participated in the ICO. As a result, the SEC had complained against him.

This is not the sole case in which SEC has freezed the activities of ICO’s. In the month of May, titanium blockchain Inc managed to raise $ 21 million from investors from not just United States but also in Canada. SEC filed a complaint against them stating that they lied to various stakeholders regarding their relationship with Federal Reserve. They also falsely claimed that they were associated with many multibillion-dollar companies like Walter Disney, Boeing, Verizon. These facts were not true at all. The company could not back these up with proper evidence. This is the reason why they were widely regarded as false claims made by the company.

In another instance, founders of the start-up company Centra tech were also accused of security frauds, wire fraud as well as 2 other conference he counts for running a false ICO. They had managed to raise over $ 32 million from investors. The ICO took place in 2017. They were able to raise such a huge amount by claiming that the company had ties with Wii’s as well as MasterCard.

It seems like SEC is getting more and more involved in the ICO market. This is good news for the investors as they are holding the fraudulent ICO’s. They are also punishing the guilty. As a result, even the investors who have lost some money in such ICOs have a chance of recovering the amount. This is good news for the investors in the United States.

About Manish 352 Articles
I am an avid crypto lover and a electronics & telecommunications engineer by qualification. I follow the cryptocurrency & blockchain industry closely to focus on the latest news & developments.

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