SEC Files First ICO Fraud Charges Against Canadian Organizer

The Securities and Exchange Commission, or SEC, has filed charges of fraud against the organizers of a $15 million ICO, the agency announced yesterday.

The regulator filed charges against Canadian organizers Dominic Lacroix and Sabrina Paradis-Royer, as well as a firm named PlexCorps, for violating U.S. securities laws. The organizers and the firm were also charged with defrauding investors, according to the agency’s December 1 filing.

In addition to the fraud charges, the SEC also put out an emergency asset order, which calls for the movement of the $15 million funds generated by the ICO into different accounts.

The charges were the first to be filed by the SEC’s Cyber Unit, a newly formed group tasked to closely watch ICOs, among other digital innovations that could possibly harm investors.

Read more at CoinDesk and MotherBoard.

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