A recent report from the United States Department of Justice (DOJ) informed an indictment against three men from Quebec, Canada, for allegedly running a fraudulent digital currency business, PlexCorps. They touted an Initial Coin Offering (ICO) on fake claims and raised about $8 million.
PlexCoin Operators misappropriated investors funds
The defendants are; Dominic Lacroix, Sabrina Paradis-Royer, Yan Ouellet, and they are aged 38, 26, and 36-year-old respectively. Per the document, the trio was awarded a five-count indictment by the grand jury in Cleveland for conspiracy to commit money laundering, wire fraud, conspiracy to commit securities fraud, and conspiracy to commit wire fraud.
Between May 2017 to December 2017, the defendant promoted a cryptocurrency dubbed PlexCoin to the public, which would be available to them through an ICO. As per the indictment, PlexCoin operators intended to enrich themselves by defrauding the unsuspecting investors through the ICO.
The PlexCoin operators reportedly promoted the fraudulent business with false claims to convince investors. They claimed that the proceeds would be used to enhance the PlexCorps products and that investors would receive a high return for their initial investment. During this period, the omitted several facts about them in order to conceal the main intention.
$8M gone to PlexCoin ICO
PlexCoin operators began accepting investors’ funds for the cryptocurrency from August and continued to October 2017. Per the indictment, the defendants moved those funds to their bank accounts, while other investments with crypto were transferred to their wallet. The defendants garnered about $8 million from the alleged fraud, only for their daily living expenses.
United States Attorney Justin Herdman, commented:
“While technologies and the means to make investments may change, one thing remains constant – securities fraud ruins lives and deprives victims of their hard-earned money and savings. Digital currencies are a new type of investment, and just like with traditional securities, you should take the time to research and know exactly what you’re getting into before making any type of investment.”