July 31, 2024 Decisions and Freeze and cease trade orders Securities

Montréal – On April 29, 2024, the Financial Markets Administrative Tribunal (the “Tribunal”) issued freeze orders and bans against Vincent Allard and Pyrole Capital inc. (the “Respondents”) further to a hearing held in their absence.

According to an ongoing AMF investigation, the Respondents committed market fraud or manipulated the price of the BALD token, a cryptoasset created by Vincent Allard. The Tribunal found that there was evidence that BALD was deployed on a decentralized exchange for the purpose of manipulating the token’s value and reaping large profits and that the Respondents had made the equivalent of more than CAD $7 million from these illegal activities over a two-day period. In so doing, they carried on business as a securities dealer and adviser without being registered with the AMF and distributed investment contracts to the public without preparing a prospectus subject to a receipt issued by the AMF or benefitting from an exemption from this requirement.

The Tribunal found that the AMF had presented compelling evidence that the Respondents had committed the alleged apparent breaches and said that, in its opinion, without the AMF’s intervention, the amounts harvested from investors would likely be dissipated by the Respondents.

Consequently, the Tribunal prohibited the Respondents from engaging in any activity for the purpose of directly or indirectly trading in any security, including BALD or any other token in the nature of a form of an investment. It also prohibited the Respondent from acting as dealers or investment fund managers.

Lastly, the Tribunal issued various freeze orders on the Respondents’ bank and cryptoasset accounts.

Notices of contestation were filed by the Respondents, but to date no hearing has been set.

Appeal to consumers

If you have information that could help the AMF in its ongoing investigation in this matter, please contact the AMF at [email protected].

About the Autorité des marchés financiers

In its role as regulator, the Autorité des marchés financiers acts to maintain a financial sector that is dynamic, operates with integrity and warrants public confidence. It regulates, in whole or in part, activities in the following sectors: insurance, securities and derivatives, distribution of financial products and services, deposit institutions, mortgage brokerage and credit assessment.

INFORMATION

Media only:
Sylvain Théberge: 514-940-2176
[email protected]

Information Centre:
Québec City: 418-525-0337
Montréal: 514-395-0337
Toll-free: 1-877-525-0337
X (Twitter): @lautorite This link will open in a new window
LinkedIn: Autorité des marchés financiers (Québec) This link will open in a new window