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Comment by gruez | Hacker News Reader

if the company's in quebec, how were they able to freeze their assets? did the company have exchange accounts in US? does the SEC have some sort of agreement with the canadians?

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I don't know for sure. All I know is that the AMF (Autorité des Marchés Financiers, Quebec "equivalent" of the SEC) froze Dominic Lacroix assets on Jun 13 2017[0]. Yet, his employees were still getting paid and he launched Plexcoin even if a court order was forbidding him to do so.

Maybe the AMF had information about accounts in USA and tipped the SEC?

[0] https://lautorite.qc.ca/en/general-public/media-centre/news/...

EDIT:

More information: The court order preventing him to launch Plexcoin was issued on July 20[1]. He did not comply and was charged for court contempt in September. The court found him guilty on oct 17 2017[2].

[1] https://lautorite.qc.ca/en/general-public/media-centre/news/...

[2] French only - https://lautorite.qc.ca/grand-public/salle-de-presse/actuali...

I would also like to know more about this. Could anyone with experience in the area please explain?

Because they are US ;). How were they able to bring down btc-e, owned by foreign citizens, employing foreign citizens, registered in a foreign country? US are playing by their own rules, and so far they have made the world to just eat it.

My understanding is Canada doesn't have a federal equivalent of the SEC, but there are provincial bodies for the same purpose. I assume SEC reached out to the quebec securities group and quebec was convinced enough to take action?

The SEC has global reach, and most regulatory authorities follow their lead. If you touch Americans in any way, shape, or form, they will find a way to get you.

If it's priced in USD then the SEC can act. To my knowledge, clearing any type of security with dollars as a denomination requires SEC approval. Due to the status of the dollar as the global standard currency this gives the SEC considerable power.

If you trade GBP/USD and then USD/EUR then you have to abide by SEC regulations.

If you sell PLEX/USD then you have to abide.

So anyone offering PLEX/USD has to comply with the freeze.

And if they have any accounts in dollars that will be frozen.

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