An anonymous reader a report from Ars Technica: The Securities and Exchange Commission on Monday announced that it was taking action against an initial coin offering (ICO) that the SEC alleges is fraudulent. The announcement represents the first enforcement action by the SEC’s recently created cyber fraud unit. In July, the agency fired a warning shot. It announced that a 2016 fundraising campaign had run afoul of securities law, but that the SEC would decline to prosecute those responsible. The hope was to get the cryptocurrency world to take securities laws more seriously without doing anything drastic. Now the SEC is taking step by prosecuting what it considers to be one of the most egregious scams in the ICO world. The SEC’s complaint, filed in federal court in New York, is against Dominic Lacroix, whom the SEC describes as a “recidivist securities law violator.” The SEC considers Lacroix’s cryptocurrency project, PlexCoin, to be a “fast-moving Initial Coin Offering (ICO) fraud that raised up to $15 million from thousands of investors since August by falsely promising a 13-fold profit in less than a month.” The PlexCoin has a hilariously vague description of this supposedly revolutionary cryptocurrency. “The PlexCoin’s new revolutionary operating structure is safer and much easier to use than any other current cryptocurrency,” the site proclaims. “One of the many features of PlexBank will be to secure your cryptocurrency from market variation, which is highly volatile, and invest your money in a place where you can get interesting guaranteed returns.” According to Ars, “The SEC isn’t impressed and is arguing that PlexCoin has ‘all of the characteristics of a -fledged cyber scam.’ The agency is seeking to freeze the of the PlexCoin project in hopes of getting investors’ funds back to them.”


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