The following is a press release from the Massachusetts Attorney General’s office
BOSTON — Massachusetts Attorney General Maura Healey announced today that payment processor Stripe, Inc. will pay $120,000 to resolve allegations that its risk monitoring and fraud prevention and mitigation practices violated the state’s consumer protection law.
According to the assurance of discontinuance filed in Suffolk Superior Court, Stripe processed payments facilitated by Dominic Lacroix – the owner of “PlexCoin” – and his associates, resulting in the fraudulent and unregistered offer and sale of cryptocurrency. Lacroix allegedly used Stripe accounts as part of the PlexCoin scheme and illegally obtained funds from 22 investors in Massachusetts.
Cryptocurrency is cryptocurrency is a digital currency designed as a medium of exchange.
The AG’s Office further alleges that Stripe knew or should have known of Lacroix’s fraud in time to prevent harm to Massachusetts consumers, but failed to do so due to its inadequate risk monitoring and fraud prevention and mitigation practices and procedures.
Lacroix and his associates have been subject to federal enforcement actions in connection with PlexCoin, most recently in the U.S. Federal Court for the Northern District of Ohio. They are alleged to have engaged in and facilitated allegedly fraudulent and unregistered cryptocurrency sales.
Today’s settlement also requires security protocols to protect Stripe’s customers in the future as well as regular trainings for employees regarding risk monitoring and fraud prevention.
Consumers with questions about this settlement should contact Attorney General Healey’s Insurance & Financial Services Division at 1-888-830-6277.
The Stripe case is being handled by Assistant Attorney General Lilia DuBois and Legal Analyst Amanda Hesse of Attorney General Healey’s Insurance and Financial Services Division.