Stripe to pay $120,000 in connection with PlexCoin cryptocurrency scheme

The Massachusetts Attorney General’s Office will refrain from prosecuting Stripe, the payment processor, in the case involving participation in the PlexCoin ICO scam. The settlement will cost the company $120,000, according to the department’s пресс-релизе ведомstva.

According to the prosecutor’s office, PlexCoin founder Dominique Lacroix used Stripe accounts to conduct his scheme. Through it, the project’s organizers misappropriated funds from 22 investors.

“Stripe knew or should have promptly discovered the fraud to prevent harm to Massachusetts residents. The service failed to do so due to inadequate controls,” the statement notes.

To close the matter, the company will pay $120,000. The prosecutor’s office emphasized that the settlement requires Stripe to provide regular employee training and implement security protocols.

Earlier, the Canadian Plexcoin project positioned the PlexCoin (PLX) token as the successor to an outdated Bitcoin. Lacroix promised investors a thirteenfold return on their investments.

In December 2017, the U.S. Securities and Exchange Commission froze Lacroix’s and PlexCorps’ accounts on suspicion of $15 million fraud. The project founder also received two months in prison and a fine for contempt of court.

Earlier in April, Ripple sued YouTube after fake XRP token giveaways appeared on the service. The platform said it was not responsible for third-party actions.

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