Colorado Issues C&D to ICOs Cred, CrowdShare Mining, Global Pay Net and CyberSmart Coin Invest

Many securities regulators in the United States are very keen on restricting the access of the citizens in their states to unregulated Initial Coin Offerings (ICOs). Now, it was the time for the Colorado Division of Securities to strike.

The securities watchdog from Colorado has attacked yesterday, November 20, and it has issued cease and desist orders against four new ICOs: Global Pay Net, Cred LLC, CrowdShare Mining and CyberSmart Coin Investment. The order was signed by Gerald Rome, the commissioner of the securities agency.

All of these companies, according to the Colorado regulator, have allegedly placed fraudulent statements on their websites and had unverified data, as well as claims of high profits which seemed to be exaggerated. Because of this, the agency was inclined to believe that these companies were, in fact, scams.

Now, the number of cease and desist orders against ICOs sent by the securities regulator of Colorado has reached the sum of 18. Soon, at least two more orders will be sent as they are currently pending, so the number will likely reach 20. All these cases have happened since May and they have all violated the Colorado Securities Act in some way, according to the regulator.

Most of these companies were already investigated by the ICO Task Force which was set up by the agency. They were all deemed dangerous for the investors for not following the due regulation and for having misleading information.

ICOs REd Flagged By Colorado Regulator

The Colorado ICO Task Force has affirmed, together with Gerald Rome, that ICOs are risky. According to Rome, the number of ICOs that are found to be illegal or at least sketchy should be a huge red flag for investors in the U. S.

He also added that this shows that the fraudsters are creating fake ICOs to keep the money from the investors or even creating legitimate ICOs and abandoning them later without giving to the investors what is due. This, he believes, is the worst problem that the industry is facing at the moment.

Earlier this month, Rome has signed orders against Bitcoin Investments, PinkDate, Clear Shop Vision and Prisma, other ICOs that were unlawful or that did not follow the legislation properly.

Other states are also cracking down on ICOs, especially the most fraudulent ones. For instance, this week the securities regulator of North Dakota sent a cease and desist order for a Russian-based fake ICO that impersonated a bank based in Liechtenstein, the Union Bank.

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