SEC’s Cyber Unit Charges Canadian Firm With Coin Offering Fraud

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The US Securities and Exchange Commission on Monday announced its first-ever enforcement action against an initial coin offering, saying a Canadian company violated US securities laws in raising $15m through this new, red-hot area of finance.

Charges against the company, described by the agency as a “scam” run by a “recidivist Canadian securities law violator,” were brought by the SEC’s new cyber unit as it looks to crack down on potential abuse in the cryptocurrency arena.

The SEC alleged that PlexCorps violated securities laws by marketing and selling up to $15m worth of cryptocurrencies, also called PlexCoins, to investors in the US and elsewhere. The commission also charged Dominic Lacroix and Sabrina Paradis-Royer, the company’s founders, in connection with the sale.

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