Stripe pays $120K to resolve alleged connection with PlexCoin scam

US-based payment processing company Stripe will be paying $120,000 to resolve allegations stemming from the PlexCoin ICO scam.

The allegations bought forward by the Massachusetts Attorney General’s Office (AGO) stated that the payment processor’s fraud prevention system failed to detect the illegal transactions made by the orchestrators of PlexCoin.

PlexCoin ICO scam

As Cryptopolitan previously reported, PlexCoin founders conducted an unregistered securities sale in the United States. They promised high returns and exaggerated the amount raised by the initial coin offering.

The founders stated that the ICO raised $13 million despite it only raising $8.3 million. As such, the two founders, Dominic Lacroix and Sabrina Paradis-Royer were made to pay nearly $7 million as fine.

Stripe’s involvement

A statement from the office of Massachusetts AG Maura Healey revealed that Stripe served as the payment processor for PlexCoin at one point. The AG’s office alleged that the payment processor should have known of the Lacroix’s fraud and could’ve prevented it from harming consumers.

However, its inadequate fraud prevention system failed to protect Massachusetts consumers. Allegedly, PlexCoin received funds from 22 investors residing in Massachusetts through the payments processor.

Resolution

Now the payments processor giant has moved to resolve the allegations by paying a sum of $120,000. Stripe has also submitted an assurance of discontinuance” document that emphasizes that the amount paid is neither a fine nor a penalty. Furthermore, the agreement does not involve an “admission” by the payments processor of any fact or non-compliance with any state or federal law.