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ARTICLE · 18 OCTOBER 2018

From Boom To Busted: TMF Deems PlexCoins As Investment Contracts

The legal noose is tightening around the necks of rogue cryptocurrency issuers in Quebec. PlexCorps's legal troubles, as covered in our previous post, have deepened.

CanadaTechnology

The legal noose is tightening around the necks of rogue cryptocurrency issuers in Quebec. PlexCorps's legal troubles, as covered in our previous post, have deepened.

In Autorité des marchés financiers c. PlexCorps, 2018 QCTMF 91, the Tribunal des Marchés Financier (TMF) qualified PlexCoin as an investment contract within the meaning of Quebec's Securities Act. This should come as no surprise as all TMF decisions to date have qualified cryptocurrency products as investment contracts.1

Background: a Burgeoning Crypto-Fraud Business

PlexCorps offered a cryptocurrency called PlexCoin along with financial services such as the PlexCard, PlexWallet and PlexBank. It was run by Dominic Lacroix and, his spouse, Sabrina Paradis-Royer.

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