How the SEC is Cracking Down on Cryptocurrency


The value of bitcoin has continued to reach all time highs topping $20,000 for the first time in the coins history. This is an extremely large milestone given the coin was under $1,000 at the beginning of this year alone. With a large amount of PR coming out, it doesn’t seem like this price will drop anytime soon.

The Securities and Exchange Commission in the U.S. has released many statements warning celebrities about the products they may be unknowingly marketing. With many celebrities trying to get into the cryptocurrency world by advertising it on their platforms, the currency has shot up by a large amount. Soon after this occurred, one platform was framed for investors for millions from an unauthorized bitcoin wallet. The new cyber unit of the SEC has announced that they will be working to help solve these cryptocurrency disputes within the country.

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They have begun to get serious about regulating the cryptocurrency world and cryptocurrency related enterprises. The first of these complaints to be taken seriously was the company known as PlexCorps. PlexCorps defrauded their investors and essentially ran away with millions in currency after failing to follow the rules for U.S. securities offerings.

According to the report, “The SEC halted PlexCorps’ initial coin offering, or ICO, a sort of IPO-crowdfunding hybrid process by which companies looking to launch new cryptocurrency ventures raise capital. In return, people who invest are promised some number of the company’s digital “coins” instead of ownership shares. PlexCorps raised $15 million of investor funds from thousands of people who purchased PlexCoins or PlexcCoin Tockens—marketed by PlexCorps as “the next decentralized worldwide cryptocurrency”—since August, according to the complaint filed by the SEC.

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In doing so, the SEC alleges, PlexCorps defrauded its investors by making unrealistic promises that they would make anywhere from 200 percent to 1,354 percent returns—depending on how early they bought—in less than a month if all 400 million available PlexCoins were sold.”

The hopes are high that this type of endeavor can cease to occur in the market, and the world on cryptocurrency can become more legitimized.


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