ICO Crackdown: Colorado regulators target 4 ICOs
ICO crackdown has intensified this year with several countries cracking down on the crypto realm beginning with the tokenisation process. Initial Coin Offerings have been one of the prime tools of financial fraudsters, raising a sufficient amount and absconding, leaving the investors with nothing. All this and more has resulted in regulatory bodies pushing back.
Gerald Rome, the Commissioner at the Colorado State Securities Commission issued a cease & desist order to 4 ICOs that have allegedly offered unregistered securities to their investors, as per an official notice by the department issued on Thursday.
The Department of Regulatory Compliance Agencies’ (DORA) ICO Task Force issued the order. The taskforce began their operation back in May to investigate illegal activates that have negatively affected the state’s crypto investors.
Rome issued the order to four entities – Bitcoin Investments Ltd, PinkDate, Prisma and Clear Shop Vision Ltd who promoted these securities to the residents of Colorado.
Blockchain Investment, a blockchain firm with $700 million in assets, which has numerous celebrity promotors, which pedalled the “DB Token,” promised their customers over 1 percent in daily returns in addition to returns on internal trading of their token.
Pinkdate sought to raise $5 million via the ICO on their Pinkdate Platform (PDP). The company states that it will provide “50% of net profits through dividends” through cryptos like Bitcoin (BTC), Ethereum (ETH), Monero(XMR)or Bitcoin Cash (BCH).
Colorado crackdown; state’s financial watchdog comes :
Prisma offers their custom coin Prismacoin (PRIS) on their trading and investment platform, where investors could achieve a profit margin of 27 percent on initial investment. They claim that their “arbitrage bot” can get daily returns of up to 1.5 percent.
Finally, Clear Shop Vision has promoted three ICOs since June of this month and has offered their native token “ORC token.” Additionally, the company instructs their investors to send Ethereum tokens directly to the company’s ETH wallets, rather than through an exchange.
Several ICO plotted Ponzi schemes have been in operation, swindling million from uninformed investors. These cease and desist orders from Colorado’s financial regulator is one in a long line of regulatory pushback against fraudulent ICOs,