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.
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.