Simply setting up an ICO website? Prepare to respond to US authorities’ questions!

Maria Nikolova

SEC has received judicial assistance to compel PlexCoin’s Canadian assistant to co-operate in their investigation.

Being an “IT guy” or a marketing assistant at an entity involved in an initial coin offering (ICO) scam is not a matter to be taken lightly. The latest developments around PlexCorps, also known as PlexCoin, a virtual currency firm accused of running a $15 million ICO fraud in the United States, show that the US authorities are ready to approach any individual involved with such entities as the regulators continue to investigate scams related to cryptocurrencies.

On Monday, April 16, 2018, Judge Magistrate Judge Robert M. Levy sided with the Securities and Exchange Commission (SEC) by signing an order that asks the Quebec Superior Court for judicial assistance to compel the attendance of a witness at an oral deposition and the production of documents. The witness in question is Yan Ouellet, an employee of PlexCorps.

According to the SEC, Ouellet has assisted the firm in:

  • setting up and/or running PlexCorps’ and PlexCoin’s websites;
  • keeping track of the individuals who accessed the websites, including the identity of regulators and law enforcement agencies; and
  • opening accounts with and making a phone call to a payment processing vendor in the United States.

According to the SEC, Ouellet would have knowledge of relevant facts in the US prosecution of PlexCoin, including evidence regarding the offer and sale of PlexCoin securities in the United States; the truth or falsity of statements made by the defendants in connection with the PlexCoin ICO; the efforts, if any, made by the defendants to avoid offering or selling PlexCoin securities to United States investors; and the extent, if any, of contacts between the defendants and the United States with respect to the PlexCoin ICO.

The SEC seeks a variety of documents from Ouellet, including (inter alia) all documents and communications relating to the IP Addresses of any individual who visited any of the websites, social media accounts, discussion websites, or payment services any defendant used in connection with PlexCorps or the PlexCoin ICO, as well as all communications or documents that identify the place of business, residence, billing address, and/or physical location of all actual or potential purchasers of PlexCoin.

The case, captioned Securities and Exchange Commission v. PlexCorps (1:17-cv-07007), targets PlexCorps aka PlexCoin and Sidepay.ca, Dominic Lacroix and Sabrina Paradis-Royer. In its complaint, filed with the New York Eastern District Court in December 2017, the US regulator says that it had to take an emergency action to stop Lacroix, a recidivist securities law violator in Canada, and his partner Paradis-Royer from further misappropriation of investor funds illegally raised through the fraudulent and unregistered offer and sale of securities called “PlexCoin” or “PlexCoin Tokens” in a purported “Initial Coin Offering”.

Read this next

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

Crypto Insider

DeFi Winter Thaws: A Look at the Emerging Landscape

The past year has seen a significant shift in the Decentralized Finance (DeFi) market, transitioning from a period of decline (“DeFi winter”) to a potential season of growth.

Digital Assets

KuCoin announces $10 million airdrop as users withdraw $1.2 billion

KuCoin – the fourth-largest crypto exchange in the world by trading volume – today announced plans to distribute $10 million worth of Bitcoin and its native KCS token via an airdrop event.

<