Stripe has agreed to pay the Office of the Massachusetts Attorney General (AG) $120,000 in a settlement over the payments processorâs role in the multimillion-dollar PlexCoin initial coin offering (ICO).
- According to a Sept. 16 filing by the Massachusetts AGâs office, PlexCorpâs leadership used Stripe to defraud millions of dollars from thousands of investors, including 22 in Massachusetts, between August and September 2017.
- PlexCoinâs Canadian backers raised $15 million during the height of the ICO boom by pitching their product as âthe next decentralized worldwide cryptocurrency,â as previously reported by CoinDesk.
- But the offering quickly drew scrutiny from Canadian and U.S. regulators. It became the first targeted for prosecution by the Securities and Exchange Commissionâs crypto-focused Cyber Unit in December 2017.
- Stripe âterminatedâ the ICOâs accounts that September. It lacked adequate ârisk monitoringâ and âfraud preventionâ tactics to move faster, Massachusetts AG Maura Healey alleged.
- The firm has since bolstered its protections and has pledged to assist Healey in her officeâs ongoing investigations, according to the terms of the settlement.
- In return for Stripeâs payment, the AGâs office agreed to not pursue any civil action against the firm, according to the settlement.
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