Colorado Authorities Deny Operation Right to Three Crypto Platforms
Colorado authorities issued cease and desist orders to three cryptocurrency platforms for not complying to the proper registration process.
Colorado Springs Business Journal reported that Romes established DORA’s ICO Task Force to deter ICO scams by making companies go through a thorough investigation. Based on their recent efforts, three businesses were served with cease and desist orders for failing to register their ICOs before making them available to the public.
Bionic Coin’s website, bionic-coin.io, which can be accessed by Colorado residents, features details for an ICO called ‘Bionic’ or ‘BNC,’ which claims to enable global instant payments to anyone for the purchasing of electronic devices and software.
Bionic Coin also incentivizes its potential members to make posts on blogs and social media with the possibility of earning an outrageous sum of 10,000 tokens for each of them.
CryptoARB, an English company, promotes an investment pool to Colorado residents which claimed that allowed them to trade on crypto exchanges through their ‘cryptoarbitrage robot.’ The platform also encouraged its users to financially contribute and recruit new members, promising them a substantial reward in exchange.
Global Pay Net is a company which promoted an ICO which offered ‘GLPN Coins’ that claimed to offer a blockchain-based international financial platform.
Like the previous two companies, Global pay also offered its members rewards for making online posts about the platform. and even though it claims it is registered in Washington, there are no records to show if this is true.
The company appears to have filed with the United States Securities and Exchange Commission in 2011, but the information available on the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) seem to be outdated.
ICOs have become a popular way for startups to raise funds to develop their projects, but many of them are just scams looking to extract money from its investors, so it is understandable why Colorado authorities are so thorough in their approach.