Colorado Securities Commissioner Gerald Rome has signed the cessation and termination of orders for three cryptocurrency companies that promote offers of unregistered initial currencies in Colorado as part of an investigation into what has become a trend of allegedly fraudulent companies trying to make quick cash, according to a press release issued today by the Department of Regulatory Agencies.
According to the publication, surveys are conducted by members of the DORA Securities Division, who are part of an ICO Task Force that was convened by the Commissioner in May to identify companies or individuals who might represent a risk for investors in Colorado.
Companies that have received orders are Bionic Coin, Sybrelabs Ltd. (also known as CryptoARB) and Global Pay Net (also known as GLPN Coin Token and GPN). The previous orders have been forwarded to Bitcoin Investments Ltd. (which also carries out activities such as DB Capital), EstateX, Bitconnect Ltd. and Magma Foundation (which also carries out activities such as Magma Coin).
"Bionic Coin website, bionic coin .io, accessible to residents in Colorado, provides information for an ICO called" Bionic "or" BNC ", whose purpose is to allow instant payments to anyone, anywhere in the world, and to simplify the purchase of electronic devices and software, "according to the version. "The site contains information on the sale of its tokens, a whitepaper, blog and frequently asked questions and promises" Bionic will make your money grow effortlessly. "The site also lists supposed media partners like Forbes magazine, but investigators could not locate any reference to that company or product on the sites that allegedly promote it. "
According to the DORA version, the site also attempts to encourage users to promote Bionic by stating that people who post on popular social media sites and blogs will receive up to ten thousand tokens per post. No physical address or control person has been identified on the site.
"Sybrelabs Ltd., presumably located in Cambridgeshire, England, also promotes unregistered security to Colorado residents in the form of a pool of investments that allows trade in cryptocurrency to be negotiated through what is represented as a" robot " cryptocromo "or a tool that would allow the company to" automate many factors that occur with effective arbitrage on different tools ", according to the release.
The site, cryptoarb.org, offers large percentages of profits for a participation minimum of $ 25, up to solicit "active investment portfolios" of $ 25,000 or more. Similar to Bionic Coin, this site also encourages members to promote the investment pool and solicit others to participate by providing marketing materials that include a presentation in PDF, online banners and souvenir products
"Global Pay Net is a company that markets an ICO through ico.glpn.i nfo. This site, accessible from Coloradans, claims to sell "GLPN Coins" which allegedly will provide an international financial platform based on blockchain technology, "according to the release." A description of the supply of coins states that GLPN coins are "assets of full value representing their share in the business "and that" investors receive 80% of the company's profits ". The site also lists multiple cryptocurrency professionals as involved, two of whom have denied that this is the case. "
It was not possible to verify an additional filing request in the US Securities and Exchange Commission's EDGAR database because the phone number listed for storage 2011 is disconnected, according to DORA and no commercial depot is registered in the state of Washington where the company is presumed to be located in. Incentives are offered to people who promote ICO in the form of up to five thousand GLPN coins for social media or post on the online forum.
For the orders, all three companies were directed to cease immediately and to desist in the reminder sale of all non-registered securities to Colorado residents.