SEC planning to distribute $1.4M to PlexCoin victims

Last Thursday, the US Securities and Exchange Commission (SEC) requested court permission to distribute $1.4 million that is collected through fraudulent PlexCoin ICO to its investors.  The financial watchdogs first penalized the firm for $4.56 million and then added a further $350,000. Later, founders Dominic Lacroix and his partner Sabrina Paradis-Royer were also fined $1 million each.  The seized $1.4 million will be refunded to the victims in a single distribution, as per the court document. 

The filing stated:

Following the entry of the final judgment in this matter (D.E. 116), the entities that the Court directed to turnover assets formerly belonging to Lacroix have done so, resulting in the SEC collecting approximately $1.4 million as U.S. Assets.

Other legal proceedings that are related to the ICO are taking place in Canada and the court has appointed a receiver to collect proceeds earned from the sale of tokens. The regulator noted:

The SEC is considering recommending to this Court that the U.S. Assets be sent to the Receiver to effect one, single distribution to harmed investors. Prior to making such a recommendation, the SEC is ascertaining whether the Proposed Plan, and the accompanying claims process, is fair and reasonable and whether investors would be better served by one distribution as opposed to a second, separate distribution in the United States. 

The securities watchdog noted that the total losses incurred by the victims of the ICO are over $8 million and if the SEC hands over the distribution process to the third party receiver, it will have less than $5 million to distribute.

The filing added:

Reduction of administrative fees is important to maximize the distribution to harmed investors and is a primary reason the SEC is considering a single, coordinated distribution.