The Securities Commissioner of the State of Colorado, Gerald Rome, has issued a cease and desist order to four Initial Coin Offers (ICO) for allegedly offering unregistered securities, according to an official notice published on November 8.
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 to investigate potentially illicit activities aimed at investors in cryptocurrency. With yesterday's orders, DORA has issued 12 cease and desist actions against the 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 more than $ 700 million in assets managed in various funds. The company allegedly promised its customers more than one percent of daily returns along with additional returns in the internal "DB Token" trade.
The company reportedly stated that "the average return on the investment over a two-month period in 2017 was a staggering 95 percent," while its ICO lists a number of celebrity promoters.
The Bitcoin Investments website displays the same format, visual content and employee team as the educational site of the United States Securities Market Commission (SEC) on related risks for potential crypto-investors. According to the statement of account, DB Token ICO has not been registered as a security in the Securities Division.
"The global escort services company operated anonymously," Pinkdate allegedly seeks to raise more than $ 5 million through an ICO in tokens referred to as the PinkDate Platform (PDP). The statement says that the firm promises investors "50 percent of the net profits through dividends" in Bitcoin (BTC), Ethereum (ETH), Monero (XMR), or Bitcoin Cash (BCH). PinkDate's ICO has allegedly not been registered in the Securities Division.
As for Prisma, its website allegedly requires users to purchase their native Prismacoin crypto (PRIS) to use a proposed investment and investment arbitration platform, through which investors could ostensibly make profits of up to 27 percent. of your initial investment. It is claimed that the "arbitration bot" generates benefits of up to 1.5 percent daily.
The last company on the list, Clear Shop Vision, Ltd, has promoted three ICO since June 2018 and has offered "ORC Token" with a "serious appreciation potential". The company's site allegedly directs investors to send ETH directly to the ETH portfolio of Clear Shop, but not through a crypto exchange.
According to the notice, all listed companies must cease immediately and desist from all alleged violations of the Colorado Securities Law, including unregistered securities and fraud.