Back in December 2017, Leaprate reported that the SEC obtained an emergency asset freeze to stop the ICO fraud of PlexCorps that raised $15 million from multiple investors by misleading them with 13-fold profit figures in less than 1 month.
After the regulator settled charges with PlexCorps by penalizing it with $4.56 million plus an additional $350,000 to the company with a $1million-fine for each of the founders: Sabrina Paradis-Royer and Dominic Lacroix.
Now, the regulator asked on Thursday for a special court permission to distribute $1.4 million from the fake Plexcoin ICO to defrauded investors.
The $1.4 million amount was the exact amount that the SEC manage to seize from the company’s assets and is now trying to compensate investors with the same amount. The planned distribution will be a single one, as per court filings.
Apart from the US legal proceedings, proceedings in Canada are also underway. The court has already appointed a receiver to get the token sale proceeds and the SEC is also an interested stakeholder in the Canadian legal process.
According to the US watchdog the losses to investors from the fraudulent ICO are above $8 million and if the SEC decides to hand over the compensation process to some third party stakeholder (receiver) then it will have less than $5 million to distribute to the Victims.
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PlexCoin victims may receive $1.4 million in compensation from the SEC was first posted on January 3, 2020 at 7:29 pm.