The Securities Commissioner of the State of Colorado, Gerald Rome, has issued an order to suspend and withdraw four Initial Coin Offers (ICO) for allegedly the offer of unregistered securities, according to an official notice published on November 8th.
The orders are part of a state operation of the "ICO Working Group" within the Department of Regulatory Agencies (DORA), which in May of this year began investigating potentially illegal activities. aimed at investors in cryptocurrency. With yesterday's orders, DORA has issued 12 ceasing and desistent actions against ICOs.
On November 8, Rome signed four orders to Bitcoin Investments, Ltd. – which also does business as DB Capital – PinkDate, Prisma and Clear Shop Vision Ltd.
According to the notification, Bitcoin Investments claims to be a blockchain investment company with over $ 700 million of assets managed in various funds. The company would have promised its customers more than 1% of the daily returns and further returns in the internal trade of "DB Token".
According to the company, "the average return on investment over a two-month period in 2017 amounted to an incredible 95%", while ICO lists a number of celebrity.
The Bitcoin Investments website displays the same format, visual content and team of employees as the educational site of the US Securities Market Commission (SEC) on related risks for potential crypto-investors. According to the statement, DB Token ICO was not registered as a security in the Securities Division.
"The global escort services company was operating anonymously", Pinkdate is expected to collect more than $ 5 million through an ICO in tokens called PinkDate Platform (PDP). The statement states that the company promises to investors "50% of net profits through dividends" in Bitcoin (BTC), Ethereum (ETH), Monero (XMR) or Bitcoin Cash (BCH). PinkDate's ICO would not be registered in the Securities Division.
As for Prisma, its website allegedly requires users to purchase their native Prismacoin cryptography (PRIS) to use a proposed investment and investment arbitration platform, through which investors could apparently make profits of up to 27%. of your initial investment. It is argued that the "bot arbitrale" generates benefits up to 1.5 percent per day.
The last company on the list, Clear Shop Vision, Ltd, has promoted three ICOs since June 2018 and offered "ORC Tokens" with "potential appreciation". The company's website presumably directs investors to send ETH directly to the Clear Shop ETH portfolio, but not through an encrypted exchange.
According to the notice, all listed companies must immediately cease and desist from all alleged violations of the Colorado Securities Act, including unrecorded securities and fraud.