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> PlexCorps marketed and sold securities called PlexCoin on the internet to investors in the U.S. and elsewhere, claiming that investments in PlexCoin would yie
by finkin1 9y ago
> PlexCorps marketed and sold securities called PlexCoin on the internet to investors in the U.S. and elsewhere, claiming that investments in PlexCoin would yield a 1,354 percent profit in less than 29 days.
Is this claim the crux of the securities violation?
- quirkot 9y agoIt's effectively putting knowingly false information in your prospectus. I think that it is the crux, but IANAL
- finkin1 9y agoRight, I get that, but it seems like that statement is the only reason the SEC is halting the ICO. Seems like an incredibly idiotic statement to be making when selling a security. Would the ICO have gone off fine if they hadn't made such a ridiculous statement? I guess it could be argued without such a statement they wouldn't have raised as much money, but my guess is that they could had just hedged the statement to comply with securities laws. Seems like an incredibly dumb oversight, and anyone who knows about securities would have been able to see how dumb and risky making a statement like that is.
- philipwhiuk 9y agoIf you're making your first steps to regulate an industry you start with the low hanging fruit.
- quirkot 9y agoI guess the take away is that if you're offering a security to the general public, don’t break the law and you won’t get shut down.