The US Securities and Exchange Commission (SEC) recently went after a company called PlexCorps which announced an Initial Coin Offering last August.
The company said that the funds raised from the ICO will be used to build its PlexCoin currency, and promised investors and ROI of around 1354%. However, the SEC intervened and froze the company’s assets and issued a criminal complaint against its founders Dominic Lacroix and Sabrina Paradis-Royer, who reportedly spent a part of the raised funds on “extravagant personal expenditures”.
The SEC had already taken action against 4 ICOs since September, with the PlexCoin ICO takedown the first for the SEC’s newly established cyber fraud unit. It is said that the SEC’s recent efforts should serve as deterrent to scammers who are looking to exploit the ICO model.
Source: Bleeping Computer