Colorado Investigates Three Cryptocurrency ICOs

Questionable Cryptocurrency ICOs Becoming a Trend?

The Division of Securities of Colorado has launched an investigation into three crypto companies initial coin offerings (ICOs). According to a news release, the Department of Regulatory Agencies investigation to stop fraudulent companies offering unregistered Cryptocurrency ICOs to unsuspecting investors. Gerald Rome, Colorado Securities Commissioner has reportedly signed orders to show cause for the companies. The court orders seek more information regarding the background of the companies. Background checks and requests for information are routine checks that protect investments.

Cease and Desist Order reports that none of the firms has come out to dispute the claims. According to a Department of Regulatory Agencies (DORA) spokesperson, the hearing to show cause took place on August 24th. The spokesperson says, “There likely won’t be another hearing. Given that no respondents showed, the Division presented the case to an administrative law judge, who must determine within 2 weeks whether the case made by the Division represents factual evidence. At that point yes, the Commissioner will then issue cease and desist orders.”

The companies under investigation are Bionic Coin, Sybrelabs Ltd., and Global Pay Net. Bionic Coin provides information about an ICO that will enable the company unveil an instant payment service. The company promises to use the ICO proceeds “to simplify the purchase of electronic devices and software.” In addition, the bionic website promises to “…grow your money without any effort.”

No Physical Address

According to the press release, the site lists prominent firms as media partners. It details, the site lists “supposed media partners such as Forbes magazine, but investigators could not locate any reference to such a company or product on the sites purportedly promoting it.” As incentive, the company promises approximately 10,000 tokens per post to any individual who promotes the site via social media. However, the company does not have any physical address. Neither could investigators find a contact person on the website. Sybrelabs Ltd., and Global Pay Net also use fictitious information that appeal to the readers. Sybrelabs Ltd., promises to help investors trade using a “cryptoarbitrage robot.” It indicates Cambridgeshire, England as its base.

Finally, Global Pay Net promises to use the ICO proceedings to “create an international blockchain-based financial platform.”

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