SEC cyber unit files charges over ICO fraud

The SEC is cracking down on ICO fraud. (Image: Getty Images/iStockphoto)
The US Securities and Exchange Commission on Tuesday announced that its new cyber unit filed charges alleging initial coin offering (ICO) fraud. A company called PlexCorps raised up to $15 million from thousands of investors since August by falsely promising a 13-fold profit in less than a month, the complaint filed in a federal court in New York alleges.
The SEC charges said PlexCorps marketed and sold securities called PlexCoin since August, and claimed investments in PlexCoin would yield a 1,354 percent profit in less than 29 days.
Virtual coins or tokens are created and shared using distributed ledger or blockchain technology, and these can be sold in an ICO. Businesses, developers, and individuals are using ICOs to raise capital, and often turn to social media and other marketing avenues to gain interest.
“This first Cyber Unit case hits all of the characteristics of a full-fledged cyber scam and is exactly the kind of misconduct the unit will be pursuing,” Robert Cohen, chief of the cyber unit, said in a statement. “We acted quickly to protect retail investors from this initial coin offering’s false promises.”
The complaint alleges Dominic Lacroix and Sabrina Paradis-Royer were behind the fraud. It charges Lacroix, Paradis-Royer and PlexCorps with violating the anti-fraud provisions, and Lacroix and PlexCorps with violating the registration provision, of the US federal securities laws.
We have reached out to PlexCorps for comment.
The new Cyber Unit was launched by the SEC in September to focus on problems like ICO fraud, “misconduct” on the dark web, hacks aimed at stealing nonpublic information, intrusions into retail brokerage accounts, market manipulation schemes involving “false information spread through electronic and social media,” and cyber threats to market infrastructure like trading platform.
光一科技:发行股份收购资产事项虽停止,版权服务布局仍持续
The SEC warned investors about ICOs in August: “Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams.”PREVIOUS AND RELATED COVERAGE
SEC steps up efforts to fight cyber crime
In the wake of the Equifax hack and its own cybersecurity breach, the SEC forms a new unit to combat problems like cyber threats to trading platforms and dark web misconduct.
Want to make money on an initial coin offering? Beware the risks, says SEC
New technology can lead to new scams, the regulator has warned.
A better blockchain: Bitcoin for nothing and transactions for free?
僵尸网络不断被捣毁,但是野火烧不尽,春风吹又生,在黑防的博弈之中,僵尸网络中的最终用户如何能摆脱反复受控呢?需要加强对他们进行安全问题的通报和安全防范基础的教育。
Imagine a blockchain-like protocol that promises to remove what is seen as the two biggest deficiencies in blockchain: inefficient mining and soaring transaction fees. IOTA is working on a fix.
Decision time is here for blockchain, but are enterprises ready?
Blockchain may help deliver the open transactions and innovation we’ve long been promised. But there may be plenty of friction getting there.
Why more companies will be betting on Bitcoin in 2018 (TechRepublic)
Many organizations are still reluctant to trust blockchain technology, however others have found good use cases for it apart from Bitcoin.
Related Topics:
Government – US

Security TV
Data Management
日前出现的大量黑客事件给互联网企业敲响警钟,一直伴随着互联网发展的安全问题再次摆到互联网企业的高管面前。

猜您喜欢

信息安全技术竞赛启动!构筑上海成为高技能人才培养基地
包含灭火器使用等消防设施和器材操作的在线EHS动画培训课程
网络安全法宣传推广视频 https://v.qq.com/x/page/p050493s0f5.html
理上网来
VIDEOTREKKING POLICESECURESAVEGUARD-ALERT
白帽黑客培训班