The SEC Begins Cracking Down on Cryptocurrency


The value of bitcoin continues to reach new high prices in the month of December, passing $12,000 for the first time. With a large amount of media attention that is increasing almost daily, it does not seem like bitcoins rise will slow down anytime soon.

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The U.S. Securities and Exchange Commission put out a warning recently for celebrities who think that investing or putting out information on an initial coin offering would be a good idea. The SEC recently announced a cuber unit, that filed its first ever complaint, signaling that the agency may soon be regulating the cryptocurrency industry.

Firms in the cryptocurrency industry such as PlexCorps have often defrauded investors by offering false promises and sometimes even disappearing with their money. The SEC halted the PlexCorps initial coin offering or ICO as it is known in the industry. An ICO is essentially a way for a start-up to raise capital using cryptocurrency as opposed to offering traditional stocks. The company managed to raise upwards of $15 million in investor funds, where in turn the investors were given these digital coins. The company marketed these coins as “the next decentralized worldwide cryptocurrency.” Unfortunately, the unrealistic returns the company promised never occurred.

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The website stated that “the first 50 million PlexCoins would cost 13 cents each, the next 50 million would be priced at 28 cents, the next 100 million at 53 cents, and the last 200 million for 88 cents apiece. Immediately following the ICO, the website claimed, the value of a PlexCoin would be set at $1.76 and from that date forward … the value should normally increase, as PlexCoin will be from that moment available on the open market.”

The hopes are high that these types of false companies can cease to ruin the name of cryptocurrency with the help of the SEC.


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