Colorado State Regulator Suspends Four More ICO Companies
The Colorado Securities Department has issued another series of cease-and-desist orders through four allegedly fraudulent Initial Coin Offering (ICO) campaigns. Writes about this CoinDesk.
The agency said Tuesday that its secretary, Gerald Rome, has signed four new executive orders regarding Global Pay Net, Cred LLC (also known as Credits), CrowdShare Mining and CyberSmart Coin Invest..
All companies posted allegedly inaccurate statements on their websites, made false promises, reported unusually high profitability of their products and dividends, disclosed insufficient information and distorted facts, the regulator says..
Taking into account the new orders, the total number of ICOs affected by the Colorado authorities has reached 18. At least two more orders are awaiting signing, the department explained, noting that all these ICOs violated Colorado securities law.
This is the result of the investigations of the ICO Working Group formed by the Colorado Securities Department, which is engaged in the fight against illegal activities aimed at investors in the cryptocurrency sector..
“The huge number of orders issued to ICOs should serve as a wake-up call for investors, who should be aware of the real risk that the ICOs they are considering may be fraudulent in nature,” Rome said. “Our investigation has shown that there are scammers who simply create fake ICOs to steal investors’ money or counterfeit full-fledged ICOs to deceive investors and force them to mistakenly transfer money to them “.
Earlier this month, Rome signed executive orders regarding crypto companies Bitcoin Investments, PinkDate, Prisma and Clear Shop Vision.
Also this week it became known that a similar order was issued by the regulators of the state of North Dakota in relation to the ICO with Russian roots, the organizer of which announced his connection with the Liechtenstein bank.
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