Three cryptocurrency companies are currently under probe for the promotion of unregistered initial coin offering (ICO). The Colorado Department of Regulatory Agencies (DORA), which is the primary department of the Colorado state government, handles professional licensing and consumer protection, along with the initial coin offering (ICO) task force of Colorado, are conducting the investigation
Companies facing investigation for ICO
The three companies that are facing investigation are Bionic Coin, Sybrelabs Ltd. (also known as Cryptoarb), and Global Pay Net (also known as Glpn Coin and Gpn Token). As reported by Bitcoin.com, the agencies said: “As part of an investigation into what has become a trend of allegedly fraudulent companies looking to make quick money.” The Commissioner of Colorado Securities Gerald Rome has “signed orders to show cause for three cryptocurrency companies” petitioning to Colorado residents.
The announcement said: “The companies that received the orders are Bionic Coin, Sybrelabs Ltd. (also known as Cryptoarb), and Global Pay Net (also known as Glpn Coin and Gpn Token). Previous orders were submitted to Bitcoin Investments Ltd. (also doing business as Db Capital), Estatex, Bitconnect Ltd., and Magma Foundation (also doing business as Magma Coin).”
The state is conducting investigations seeing the threats that investors have been facing and the rise in the number of fraudulent activities by companies who see it as a form of fast cash.
As per the Commissioner’s order, the three companies were asked to present evidence, but none of the companies turned up for the hearing. Talking on behalf of DORA, a representative confirmed that the hearing was scheduled on 24th August to show cause, but “none of the companies listed responded”.
The representative further added: “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.”
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