Colorado authorities have signed cease and desist orders for 3 cryptocurrency companies promoting unregistered Initial Coin Offerings within state lines. The orders be part of a broader investigation of allegedly fraudulent companies operating crypto-related scams as reported by the Department of Regulatory Agencies .
Colorado Securities Commissioner Gerald Rome has assembled an ICO task force on your purposes of identifying companies or individuals that might pose a risk to Colorado investors. Important companies currently under investigation are Bionic Coin, Sybrelabs Ltd. and Global Pay Net . Colorado’s ICO Task Force been specifically responsible for investigating Bitcoin Investments Ltd , EstateX, Magma Foundation , and most infamously, Bitconnect Ltd.
“Bionic Coin’s website, bionic-coin.io, that is certainly accessible by Colorado residents, provides information for an ICO named ‘Bionic’ or ‘BNC,’ objective of which is to enable instant payments to anyone, wherever, and to simplify purchasing electronic devices and software,” reads a press release from DORA. “The site has information regarding the sale of that tokens, a whitepaper, blogs and infrequently asked questions, and promises ‘Bionic will raise your money with no effort.’ The site also lists supposed media partners which include Forbes magazine, but investigators did not locate any hitting the ground with such a company or product over the sites purportedly promoting it.”
Bionic’s site reportedly states to offer those that promote Bionic on popular social media sites and blogs with as many as ten thousand tokens per post. The business enterprise has no street address or listed employees on the spot.
“Sybrelabs Ltd., allegedly located in Cambridgeshire, England, also promotes an unregistered security to Colorado residents as an investment pool that permits for trading on cryptocurrency exchanges through exactly what is represented being a ‘cryptoarbitrage robot,’ or possibly a tool that will allow the company to ‘automate many factors occurring with effective arbitrage on several instruments,” said DORA.
Sybrelab’s website Cryptoarb.org provides a wide range of investment portfolios, ranging from $25 to $25,000, while promising large returns to investors. The internet site actively pushes members to solicit others to join its investment pool and give marketing materials, PDF presentations, online banners and souvenir products.
Lastly, Global Pay Net is marketing an ICO to Colorado residents over the sale of ‘GLPN Coins’, which are purported to assist build an intercontinental financial platform serving the area around blockchain technology.
“A description of the coin offering states that GLPN coins are ‘full-value assets that represent one’s be part of the business’ which ‘investors receive 80 % of the company’s profits,’” reports DORA. “The blog also lists multiple cryptocurrency professionals to be involved, two of whom have denied which the is the case.”
Global Pay Net’s website had also claimed to enjoy filed using the United States Securities and Exchange Commission’s EDGAR database. However, the cell phone number from the listing has long been disconnected. DORA reports it has been unable to find any company filing in Washington state, where Global Pay Net says it will be based. Such as other companies under investigation, Global Pay Net was offering individuals close to five thousand GLPN coins per web 2 . 0 post for promoting the company’s likely fraudulent ICO.