US Government Files Fresh Charges Against PlexCoin ICO Organizers

Having only settled with the SEC last year, the PlexCoin founders now face a fresh round of charges from the U.S. Department of Justice.

Jul 27, 2020 at 2:14 p.m. UTC
Updated Sep 14, 2021 at 9:36 a.m. UTC

The founders of PlexCoin have been hit with charges from the U.S. Department of Justice (DOJ), just a year after settling with the Securities and Exchange Commission (SEC).

  • The DOJ said last week an Ohio grand jury indicted three figures in the PlexCoin initial coin offering (ICO) on conspiracy to commit both securities and wire fraud, as well as money laundering and one count of wire fraud.
  • The DOJ alleges founder Dominic Lacroix, Yan Ouellet and Sabrina Paradis-Royer, from Quebec, Canada, made false statements including promising returns of over 1,345%.
  • PlexCoin raised a total of $15 million from investors in 2017; the SEC stopped the sale with an emergency asset freeze in December of that year.
  • Lacroix, Paradis-Royer and PlexCorp were all sued by the SEC for securities fraud in late 2017 and Lacroix had his assets frozen again in June 2018.
  • Last August, the defendants agreed to each pay $1 million in penalties and not participate in a securities sale again; PlexCorp would also disgorge $4.56 million plus $350,000 in interest to the SEC.
  • Lacroix served a two-month prison sentence in Canada for contempt of court in 2017.
  • If found guilty, the DOJ's indictment may well take PlexCoin's remaining ICO funds.

Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
'Does Radio Ring a Bell?': How the Metaverse Will Change Society

The metaverse is the latest technological evolution to be scoffed at – but it will change everything. This article is part of "Metaverse Week."

The metaverse is the latest technological evolution to be scoffed at – but it will change everything. This article is part of "Metaverse Week."

CoinDesk - Unknown
2
CoinDesk - Unknown
Jae Kwon Returns to ‘NewTendermint’ to Battle for the Soul of Cosmos

Ignite, which rebranded from Tendermint in February, will split into two entities: Ignite and NewTendermint.

Ignite, which rebranded from Tendermint in February, will split into two entities: Ignite and NewTendermint.

CoinDesk - Unknown
3
CoinDesk - Unknown
Crypto Whales Ditched Tether for USDC After Stablecoin Panic

The UST failure prompted large investors on the Ethereum blockchain to leave USDT for the perceived safety of its biggest competitor.

The UST failure prompted large investors on the Ethereum blockchain to leave USDT for the perceived safety of its biggest competitor.

CoinDesk - Unknown
4
CoinDesk - Unknown
FTX’s Bankman-Fried Pitches CFTC on Directly Clearing Customers’ Crypto Swaps

The crypto exchange’s founder and CEO made his case at a Washington, D.C., roundtable, while mainstream derivatives firms painted his ideas as dangerous.

The crypto exchange’s founder and CEO made his case at a Washington, D.C., roundtable, while mainstream derivatives firms painted his ideas as dangerous.

CoinDesk - Unknown