Stripe has agreed to pay the Office of the Massachusetts Attorney General (AG) $120,000 in a settlement over the payments processor's role in the multimillion-dollar PlexCoin initial coin offering (ICO).
- According to a Sept. 16 filing by the Massachusetts AG's office, PlexCorp's leadership used Stripe to defraud millions of dollars from thousands of investors, including 22 in Massachusetts, between August and September 2017.
- PlexCoin's Canadian backers raised $15 million during the height of the ICO boom by pitching their product as "the next decentralized worldwide cryptocurrency," as previously reported by CoinDesk.
- Stripe "terminated" the ICO's accounts that September. It lacked adequate "risk monitoring" and "fraud prevention" tactics to move faster, Massachusetts AG Maura Healey alleged.
- The firm has since bolstered its protections and has pledged to assist Healey in her office's ongoing investigations, according to the terms of the settlement.
- In return for Stripe's payment, the AG's office agreed to not pursue any civil action against the firm, according to the settlement.
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