ZZZ Coin runs into trouble in Quebec - FinanceFeeds

ZZZ Coin runs into trouble in Quebec

Quebec’s Financial Markets Administrative Tribunal shows no mercy to a coin that claims to fight against volatility in the cryptocurrency markets.

As cryptocurrency scams proliferate, the volume of regulatory action against such fraudulent schemes also grows. Several days ago, the Financial Markets Administrative Tribunal (TMF) of Quebec published its decision against one more such scheme hiding behind the catchy name “ZZZ Coin”.

This coin, as its rather drowsy name suggests, aims “to fight against volatility on the cryptocurrency markets”.

The regulatory investigation has shown that several associated entities – Antivolatility Coin, ZZZ Coin, Power Invest Group, as well as two individuals linked to these entities – Frank Bernier and William Bolduc, have solicited investments from the public to participate in an emission of a cryptocurrency. Quebec’s financial markets regulator has explained that such activities require registration of a prospectus. But none of the entities had the necessary registration in Quebec and none has submitted the necessary prospectus.

TMF has issued prohibition orders against the defendants. They are all prohibited to engage in any investment activities in Quebec and to solicit Quebec investors. In addition, the Tribunal ordered the defendants to close the website antivolatility.com which promotes ZZZ Coin. They are also ordered to withdraw all sorts of advertising and marketing materials associated with their investment activities.

This is not the first time that the TMF has to act against cryptocurrency scams. In February this year, for instance, it extended the duration of restraint orders against Dominic Lacroix, DL Innov inc. (operating as PlexCorps and PlexCoin), Micro-Prêts inc. and Gap Transit inc. The orders prohibit the defendants from all activities involving securities and from providing investment advice. The orders also freeze the assets of the defendants and prohibit them from operating with the funds obtained from investors.

PlexCoin is also targeted by the Securities and Exchange Commission (SEC) in the United States. The US regulator has recently turned to the Quebec Superior Court for help after witnesses in the case targeting PlexCoin ICO scammers refused to appear to testify in New York.

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