Three crypto firms have been issued cease and desist orders by the Colorado Department of Regulatory Agencies for allegedly promoting unregistered ICOs. The Department, which goes by the acronym DORA, has issued these orders against the firms on the ground of running fraudulent initial coin offerings. The ICO Task Force was headed by DORA Securities Commissioner Gerald Rome and the Task Force started focusing on ICOs after a series of ICOs were revealed to be scams. The three companies which are at the receiving end of the orders, according to the press release, are Sybrelabs Ltd., Bionic Coin and Global Pay Net.
Out of these three,it appears that Bionic Coin has engaged in illegal activities the most, making false promises to increase the money of investors without putting in any effort. It also claimed to be associated with Forbes magazine without any reality to such claims. In addition, it had also been offering a suspicious bounty program offering up to 10000 tokens everytime one made a post on the social media or the blog.
Sybrelabs Ltd., had made the offer to investors to take part in a shared pool of investments that would have to be traded over a “crypto-arbitrage robot”. This is supposed to give the investors high profits even on investments as low as $25. Global Pay Net had also promised to give the investors at least 80% of the profits they earned.
The DORA order has ordered the websites of the three firms to immediately stop its operations and abstain from any further acts of solicitation in relation with unregister illegal securities to inhabitants of Colorado. Bionic and Global Pay Net have apparently both stopped their ICOs while Sybrelabs and Cryptoarb have completely withdrawn their websites. The Global Pay Net website states that their ICO had raised 97 percent of their goal, but this figure has not been verified by any independent authority.
A few weeks ago, Colorado had already issued orders against companies like Magma Foundation, EstateX, Bitcoin Investments Ltd. And Bitconnect Ltd.