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The government agency also charged company founders Dominic Lacroix and Sabrina Paradis-Royer for their part in the sale and announced it had frozen company assets in an effort to halt this “fast-moving Initial Coin Offering (ICO) fraud.” In July, the Quebec Financial Markets Administrative Tribunal issued a series of orders prohibiting Lacroix from promoting the sale of Plex Coins ahead of the launch.

In October, Quebec’s Superior Court ruled Lacroix was in contempt of court for continuing to solicit investment into Plex Coins.

However, experts have warned they can present several dangers to unsuspecting investors hoping to get into a hot new market as regulations are pretty loose.

Called Plex Coins, Plex Corp allegedly used this cryptocurrency to scam would-be investors hoping to cash in early on the company’s growth, telling them each Plex Coin would “yield a 1,354 percent profit in less than 29 days,” according to a statement from the SEC.

However, this is the first charge coming from the SEC’s new cyber unit and a testament to the agency’s willingness to crack down on a largely unregulated sector often rife with shady activity.