The creator of the virtual currency plexcoin, Dominic Lacroix, that fleeced nearly $15 million from investors has been sentenced to two months in prison for contempt of court, CBC/Radio-Canada reported on Friday.
Starting in August of this year, Quebecer Dominic Lacroix collected funds from investors buying into an Initial Coin Offering (ICO)—basically a fundraising round wherein people buy digital tokens from a startup—for a token called PlexCoin. PlexCoin offered eye-popping returns, but its claims about employing a global team of experts were bullshit, according to the US Securities and Exchange Commission, among other falsities.
Lacroix was ordered to stop the launch of PlexCoin by Quebec’s financial regulator in July but went ahead with the ICO anyway. For that, Lacroix earned a contempt of court charge in Quebec and had his assets frozen in the province. In November, the SEC followed Quebec’s lead and filed a complaint against PlexCoin, Lacroix, and his partner Sabrina Paradis-Royer. The SEC called PlexCoin a “full-fledged cyber scam” and froze the pair’s assets in the US.
Now, PlexCoin and Lacroix have been delivered some small portion of justice in Canada. According to CBC/Radio-Canada, Dominic Lacroix will have to pay $ 10,000 in his personal capacity and his Quebec-based company DL Innov, $ 100,000. He was fined for continuing to solicit investors even though a court order forbade him to do so
PlexCoin’s legal saga is probably not finished after Friday’s ruling in Quebec as the US Feds are still on its tail.