Fighting cryptocurrency scams remains a top priority for the SEC. One company is of great interest to the agency at this time. PlexCorps, the company responsible for creating PlexCoin, is on their radar. Putting an end to this project has proven to be a lengthy process which appears far from over.
The PlexCoin Debacle Continues
An initial investigation of PlexCorps and its PlexCoin currency began in late 2017. The company raised millions from investors around the world. It did not take long before the SEC took note of the company and tried to shut it down. There are genuine concerns the PlexCorps team enriched themselves with the funds raised, first and foremost.
So far, the team has not offered any satisfactory rebuttal. They still claim PlexCoin is a currency rather than a security. A noteworthy statement, although one rejected by the New York Eastern District last year. As such, the SEC continues to address the project’s issuance of an unregistered security. Failing to comply with regulation warrants legal action and potential harsh sentencing.
New documents filed against PlexCorps confirm the crackdown against the company is still going on. SEC officials are convinced more than ever the team committed fraud. Additionally, they still want to drive home the point of how PlexCoin is effectively a security. As such, reimbursing affected investors becomes the number one priority.
A Long Road Ahead for the SEC
It is commendable to see the SEC relentlessly pursue malicious actors. Cryptocurrency scams and security offerings have, sadly, become a regular occurrence in the ecosystem. For the SEC, cracking down on all of these malicious projects is at the top of its agenda. A similar effort is taking place in New Zealand. Warning the public on potential fraudulent offering will prevent people from being disappointed when the projects fail to pan out.
It seems unlikely the PlexCorps debacle will end in the near future. By submitting this new evidence, the ongoing court case will be dragged out even longer. This new information needs to be reviewed and validated. However, the outcome of this ongoing investigation can set a tone for the other investigations launched by the agency.
The need for proper ICO regulation becomes all the more apparent. Without clear guidelines, projects like PlexCoin will continue to run rampant. Nipping these problems in the bud at an early stage is direly needed. Preferably before they can even cause financial problems for potential investors. The SEC is leading the charge, but official nationwide guidelines are needed and can legitimize the ICO industry.
Do you think PlexCoin is a scam? Let us know in the comments below.
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