The United States Securities and Exchange Commission has come to an agreement with the founders of PlexCoin, an illegal crypto scheme that was in the works in 2017.
Both of the founders, Dominic Lacroix, and Sabrina Paradis-Royer have agreed that they will pay a civil penalty of $1 million each and never participate in securities offerings in their lifetime. If they’re caught being involved in such activities, jail time is inevitable.
PlexCoin itself as a company is going to pay a hefty $4.5 million in fines with $350k added interest. Many say that it’s quite light coming from the SEC, but the company may not have anything else to pay as it will be closing down right after the payment.
The lawsuit has been in process for more than two years now as the SEC caught both Royer and Lacroix when they were offering unregistered securities and promising huge returns to investors, a huge no-no in the United States.
The PlexCoin ICO managed to raise around $8.3 million during its funding phase, but reported an accumulation of $13 million, a clear breach of SEC regulations even if they were registered.
Considering the legal fees, past costs and the $7.5 million fine, it seems like the founders will be losing everything they received from unsuspecting investors.