Members of the Division of Heads of the Colorado Regulatory Agencies Department (DORA), and of the state's initial Coin Board (ICO) Task Force, investigated cryptocurrency firms to promote ICOs not registered in the state. The task force was set up in May to identify companies or individuals that could pose a risk to investors in Colorado.
"As part of an investigation into what has become a trend of supposedly fraudulent companies trying to make quick money," the agencies announced Monday that the Colorado Securities Commissioner Gerald Rome has signed the order to show the lawsuit for three cryptocurrency companies "urging residents in Colorado. The details of the announcement:
The companies that received the orders are Bionic Coin, Sybrelabs Ltd. (also known as Cryptoarb) and Global Pay Net (also known as Glpn Coin and Gpn Token). The previous orders have been forwarded to Bitcoin Investments Ltd. (which also carries out Db Capital's activities), Estatex, Bitconnect Ltd. and Magma Foundation (also active as Magma Coin).
An order for show cases is a court order that requires recipients to justify, explain or prove something to the court.
A DORA spokesman told NewsBitcoin.com that "the hearing to show the case took place on Friday, August 24th … and none of the companies listed answered," adding:
Probably there will not be another hearing. As no respondents showed, the Division presented the case to an administrative law judge, who must determine within 2 weeks whether the case presented by the Division represents factual evidence. At that point yes, the commissioner will then issue and give up orders.
Bionic Coin's website provides information on an ICO for bionics or BNC, an ERC20 token to allow "instant payments to anyone, anywhere in the world and to simplify the purchase of devices electronic and software ", described the agencies. However, "no physical address or control person was identified on the site."
In addition to promising that "Bionic will make your money grow effortlessly", the site lists "Alleged media partners like Forbes magazine, but the investigators do not they managed to find no reference to that company or product on the sites that supposedly promote it. "
The site also tries to encourage users to promote money "by stating that people who post on popular social media sites and blogs will receive up to 10,000 tokens per post."
Sybrelabs Ltd., also known as Cryptoarb, is supposedly located in Cambridgeshire, England. His website promotes "a pool of investments that allows trading of cryptocurrency exchanges" using the "cryptoarbitrage robot" tool that allows the company to "automate many factors that occur with actual arbitrage on different tools", they explain the agencies.
encourages its members to promote the investment pool and recruit other members by providing them with marketing materials and souvenir products. The website "also offers large percentages of profits for a minimum participation of $ 25.00, up to solicit" active investment portfolios "of $ 25,000 or more," wrote DORA.
Global Pay Net
Global Pay Net markets an ICO for glpn coins, "which presumably provides an international financial platform based on blockchain technology", according to the announcement . These tokens are described as "full-value assets that represent their share in the business" and that "investors receive 80% of the company's profits". The company also offers incentives to promote "ICO in the form of up to five thousand GLPN coins for social media or post on the online forum."
In addition, while the company's website lists more cryptocurrency professionals involved, two they denied involvement. An application for filing with the US Securities and Exchange Commission (SEC) could not be verified, the agencies revealed, adding that there was no commercial presentation in Washington State where the company is supposed to be located.
What do you think of Colorado investigating these three companies? Let us know in the comments section below.
Images courtesy of Shutterstock, the Government of Colorado and DORA.
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January 14, 2019
January 14, 2019
January 14, 2019