In the past some months, the world of finance has to bear some jolts, and one more such event is noted again. As per the sources from the market, one more firm is penalized by law under the charges of forgery.
PlexCoin organizers have been indicted by a grand jury in Ohio on fraudulent charges. The founder of PlexCoin, Dominic Lacroix, along with other officials Yan Ouellet and Sabrina Paradis Royer are charged with inflating returns of the firm in order to attract investors.
PlexCoin outed two years ago
The cryptocurrency faced problems two years back when the SEC had removed them based on fraudulent charges. They were charged with violating securities law during the initial coin offering process. According to the SEC, the founder, along with other officials, violated the antifraud provisions and registration provisions.
SEC settlement with PlexCoin last year
However, they reached a settlement last year after PlexCoin promoters agreed to pay $7 million in fines. They claimed that the promoters had raised close to $8.2 million during the ICO process, and they had agreed to pay about 55 percent of the funds.
Such things are not new with cryptocurrencies, and this is the reason why most of them do not have proper valuation among the general public. Instances like this have raised a lot of concerns about regulatory norms with regard to cryptocurrencies across the world. Most countries have stringent norms for such digital assets, and they are still not used by many people in the public domain.
However, the crypto industry is also aiming towards getting regulatory approvals in recent years, and they want to come into mainstream financial markets by way of listing in popular exchanges. Many of them are planning IPOs this year, and if the trend is positive for the initial attempts, many more companies will follow the same method shortly.
This is a good trend as the crypto industry badly needs some regulation, and the common public should be aware of what is happening with the promoters. This will give them confidence about their investments, and the crypto industry can attract millions of new investors in this manner. Companies such as PlexCoin may come and go, but reputed blockchain-based currencies will make new attempts to win public confidence. The near future will see many new entrants into the market, and investors have to be careful about choosing such options.