As per the official notice published on November 8, cease and desist orders have been issued by the Colorado State Securities Commissioner, Gerald Rome to major Initial Coin Offerings (ICOs) for providing the unregistered illegal securities.
The orders came from the result of an investigation done by an ‘ICO Task Force’ in May this year, in the Division within the Department of Regulatory Agencies (DORA). The investigation was done to find the fraud activity, targeting crypto investors. With the orders, DORA, as of now, has issued around 12 cease and forceful actions against the Initial Coin Offerings.
On November 8, four orders were signed for Initial Coin Offerings by companies like BTC Investments Ltd (which is also trading as DB Capital), Prisma, Clear Ship Vision Ltd., and PinkDate.
The company; Bitcoin Investments Ltd, claims to be a blockchain investment firm as well as the largest owner of crypto which have over $700 million across multiple funds. However, there is no proof that it is connected to the site bitcoin.org.
The website claims fake things like – investors can expect more than 1% daily returns. Not just this but it promises to give extra returns on ‘DB Token’ internal exchanges.
The website further claims that in 2017, within two months, the average investment returns went around 95%. The ICO, which was seen promoted by many national celebrities that include famous NBA basketball player Carmelo Anthony, also has a wallet address facility where the investors in exchange for DB Tokens can send Bitcoins.
The most significant thing to be worried of is the ‘spoofing’ of the United States Securities and Exchange Commission webpage, which was made to educate crypto investors about the involved risks. The site of Bitcoin Investments Ltd has the same format which includes the exact images, employee team as the Securities and Exchange Commission website.
Pinkdate, which provides escort service globally, fundraised more than $5 million through an ICO – PinkDate Platform.
The website of Prisma allows users to buy the digital currency Prismacoin (PRIS) to use the lending and arbitraging platform of investment.
As per the notice and to follow the Colorado Securities Act, the mentioned companies have to put a stoppage mark on their illegal violations that include fraud and unregistered securities.