Three cryptocurrency firms are under investigation of the Department of Regulatory Agencies of Colorado (DORA) on the backdrop of unregistered Initial Coin Offerings (ICOs). The agency plans to assess the three crypto-based firms which are offering ‘unregistered Initial Coin Offerings’.
The assessment by DORA is part of the investigation of the practice which is being used by fraud companies to defraud the public.
An ‘ICO Task Force’ has been convened by the Commissioner in May which included the members of the Division of Securities, a part of the Department of Regulatory Agencies (DORA).
As per the announcement of DORA, “The orders have been issued to Bionic Coin, Sybrelabs Ltd (also known as Cryptoarb) and Global Pay Net (also known as Glpn Coin and Gpn Token). Earlier the orders were issued by Bitcoin Investments Ltd. (also doing business as Db Capital), Estatex, Bitconnect Ltd., and Magma Foundation (also doing business as Magma Coin).”
The ‘orders to show cause’ was signed by Commissioner Rome. The businesses have to explain their business operations in the court against this notice. Notably, the court issued the orders on Friday, August 24, 2018, but none of the three firms have answered until now.
One of the firms which are under investigation, Bionic Coin, runs its business operations on the promise of huge returns which can help them in churning ‘money without any effort’ by investing in their token BNC. The company’s website also carries the logos of some media companies claiming that they are promoting it without any references or mention. Apart from this, the website also incentivizes users who promote the coin on social media and earn a chance to receive tokens in exchange.
Similarly, the Sybrelabs and Global Pay Net run their business operations. Investors are encouraged to promote the investment pool in return of large percentages of profits for minimum participation of $25, up to soliciting by Sybrelabs.
While Global Net Pay equates ownership in the business through its native token GLPN. Apart from this, 80 percent stake in the business has been promised to investors by the company and it has listed some cryptocurrency experts as advisors which have been denied by the two people listed in the company.
