The alleged crypto scam operating in Canada by the name PlexCoin is now facing fresh charges from a regional regulator. The Quebec’s Autorité des marchés financiers (FMA) has charged the operator of the crypto scam with seven offences for frauding investors out of their money. PlexCoin was launched in 2017 by Canadian Dominic Lacroix through his company called PlexCorps. The operators of the crypto project had offered a 13-fold profit in less than a month.
PlexCoin solicited millions of dollars from investors in the US and Canada.
PlexCoin launched in 2017 allegedly solicited over $15 million from thousands of investors in the US and Canada before the SEC shut down the scam in December 2017. The operators of the alleged crypto scam are now set to face justice for their crimes after the AMF brought fresh charges against the crypto company. The local Canadian regulator has charged Lacroix with making misrepresentations regarding securities transactions and making distributions without a prospectus. The two of the other operators of the scam, Sabrina Paradis-Royer and Yan Ouellet, are also facing charges brought on by the AMF. The regulators charged them with “making distributions without a prospectus in respect of transactions in securities in connection with the PlexCoin project.”
Regulators have been chasing PlexCoin since July 2017.
The regulator claimed that they have been chasing the fraudulent project since July 2017. The AMF obtained freeze orders from the Financial Markets Administrative Tribunal on the personal property, bank accounts and digital currency wallets held by Lacroix and Paradis-Royer, the operators of PlexCoin. The Canadian regulators then collaborated with the SEC to redistribute the frozen funds to the investors. This was the first company that the SEC’s Cyber Unit filed charges against. The CyberUnit was formed to investigate crimes in the blockchain and digital currencies industry.
Since the pandemic has begun, there has been a slight surge in the scams related to cryptocurrencies all around the world.