Currently, Colorado is not a State for promoting unregistered initial coin offerings (ICOs). Hence, as it stands now three cryptocurrency firms have violated that law in the state.
The Division of Securities of the Colorado Department of Regulatory Agencies (DORA), and of the state’s initial coin offering (ICO) task force, have been investigating cryptocurrency firms for promoting unregistered ICOs in the state.
The State seeks to protect its companies or individuals from falling into dangerous hands. Hence, was the task force set up in May to identify companies or individuals that might pose a risk to Colorado investors.
“As part of an investigation into what has become a trend of allegedly fraudulent companies looking to make quick money,” the agencies announced Monday that “Colorado Securities Commissioner Gerald Rome has signed orders to show cause for three cryptocurrency companies” soliciting to Colorado residents. The announcement details:
“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).”
An order to show cause is a court order requiring recipients to justify, explain, or prove something to the court. But none of the 3 companies listed above responded.
As to whether there is going to be another hearing, A spokesperson for Colorado Department of Regulatory Agencies (DORA), said that:
“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.”
What do you think would be the future of these three cryptocurrency firms in Colorado?