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Colorado Takes Action Against Four More ICOs – 12 in Total

November 10, 2018 |

Colorado Takes Action Against Four More ICOs - 12 in Total

The Division of Securities of the U.S. state of Colorado has issued four new cease-and-desist orders to stop as many companies from promoting their tokens to residents of the state. So far, action has been taken against a total of 12 initial coin offerings by the state’s securities commissioner.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Four New Orders

Colorado Takes Action Against Four More ICOs - 12 in TotalColorado Securities Commissioner Gerald Rome on Thursday signed four orders “directing the cessation of unregistered securities in the state of Colorado,” the state’s Division of Securities announced. So far, the division has taken action against a total of 12 initial coin offerings (ICOs), the announcement details.

The orders resulted from investigations by the division’s ICO task force which is part of the state’s Department of Regulatory Agencies (Dora). It was set up in May “to investigate potentially fraudulent activity targeting investors excited about the prospects of financial windfall through the cryptocurrency market.”

According to Thursday’s announcement:

The four orders signed today are for ICOs solicited by companies Bitcoin Investments, Ltd. (also doing business as Db Capital), Pinkdate, Prisma, and Clear Shop Vision Ltd.

Colorado Takes Action Against Four More ICOs - 12 in TotalWhile the four companies and their tokens are not registered in the state, the division explained that their websites are accessible to Colorado residents. The commissioner has directed all respondents to immediately cease and desist all alleged violations of the state’s Securities Act.

The division has previously taken ICO-related action against Bionic Coin, Sybrelabs Ltd., Global Pay Net, Estatex, Bitconnect Ltd., Magma Foundation, Linda Healthcare Corporation and Broad Investments. In addition, the division participates in Operation Cryptosweep, a coordinated effort by regulators in North America.

Companies Violating Securities Act

Colorado Takes Action Against Four More ICOs - 12 in TotalThe first company named in the announcement, Bitcoin Investments Ltd., claims to have over $ 700 million in asset under management across multiple funds. The company promotes itself as a “leading blockchain investment firm and one of the largest institutional owners of cryptocurrencies.” In addition to allegedly claiming that “investors can expect over 1 percent daily returns with additional returns on internal exchanges” of its token, the company’s website states:

The average registered investment return over a two month period in 2017 was an amazing 95 percent.

Bitcoin Investments also lists a number of celebrity promoters for its ICO such as NBA basketball star Carmelo Anthony. However, “Most concerning to investigators was the alleged ‘spoofing’ of a U.S. Securities and Exchange Commission [SEC] webpage, www.howeycoins.com,” the Colorado securities division detailed. The Howeycoins website was set up by the SEC as an example of an ICO scam. The division asserted that Bitcoin Investment’s website “incorporates the same format, exact images, and an identical employee team as the SEC site.”

Colorado Takes Action Against Four More ICOs - 12 in Total

The second cease-and-desist order recipient, Pinkdate, provides “anonymously-operated, world-wide escorting service[s]” and purportedly seeks to raise over $ 5 million through an ICO. The order describes:

Pinkdate allegedly promotes a payout to investors of ‘50 percent of net profits through dividends,’ provides an investor portal, and offers to provide dividends in the form of bitcoin, ether, monero, or bitcoin cash.

Colorado Takes Action Against Four More ICOs - 12 in TotalThe third company ordered to stop promoting its token to Colorado residents, Prisma, requires users to purchase its token in order to use its lending and arbitraging investment platform. Its whitepaper “does not disclose potential risks of the investment,” the division noted, adding that its website allegedly claims that investors “can profit up to 27 percent on their initial investment, and the ‘arbitrage bot’ can generate returns of up to 1.5 percent daily.”

The last of the four cease-and-desist order recipients, Clear Shop Vision Ltd., has launched three ICOs since June, according to the division. The order states that one of the tokens was represented as having “serious appreciation potential,” and investors are asked to send ether directly to the company’s wallet rather than an exchange. The company also allegedly offers to pay users in its token to promote the launch “on social media, translation services, and referrals.”

What do you think of the Colorado securities division taking action against all these ICOs? Let us know in the comments section below.


Images courtesy of Shutterstock, the SEC, and the Colorado government.


Need to calculate your bitcoin holdings? Check our tools section.

The post Colorado Takes Action Against Four More ICOs – 12 in Total appeared first on Bitcoin News.

Bitcoin News

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Texas Takes Action Against Cryptocurrency Mining Company Promising 200% Profit

November 8, 2018 |

Texas Takes Action Against Cryptocurrency Mining Company Promising 200 Percent Profit

The Texas State Securities Board has issued an emergency cease and desist order to an Australia-based cryptocurrency mining company and its affiliates. According to the order, the company represents that investments in its mining contracts are “guaranteed to 200% profit.”

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Cease and Desist Order

Texas Takes Action Against Cryptocurrency Mining Company Promising 200 Percent ProfitThe Texas State Securities Board on Tuesday issued an emergency cease and desist order to Sydney-based Aws Mining Pty. Ltd. and nine other respondents affiliated with the company. The entities named are Automated Web Services Mining (Aws Mining), Mycoindeal, Aws Elite, and West Texas Oilfield Cloud Miners Club.

Sydney-based Mycoindeal provides wallet services for investments issued by Aws Mining. Aws Elite is a multi-level marketing organization for Aws Mining based in Pennsylvania. West Texas Oilfield Cloud Miners Club, an affiliate of Aws Elite, is a Texas-based sales agent for Aws Mining.

The order states:

The investments in the cryptocurrency mining program are ‘securities’ … Respondents are engaging in fraud in connection with the offer for sale of securities … [and] are making offers containing statements that are materially misleading or otherwise likely to deceive the public.

Texas Takes Action Against Cryptocurrency Mining Company Promising 200 Percent ProfitThe board elaborated that respondents are violating the Securities Act since neither they nor their securities are registered with the state’s Securities Commissioner.

They are, therefore, ordered to cease and desist from offering for sale any security in Texas until the securities and all parties involved are properly registered or exempt from registration.

200 Percent Return Guaranteed

According to the order, Aws Mining’s website claims that the company is mining cryptocurrency through farms located in Guangzhou, China; Ingushetia, Russia; Ciudad del Este, Paraguay; Anhui, China; and Hebei, China.

Texas Takes Action Against Cryptocurrency Mining Company Promising 200 Percent ProfitThe order describes that the companies and their executives “are issuing investments in cryptocurrency mining referred to as crypto mining power contracts, and they are representing [that] the crypto mining power contracts are ‘guaranteed to 200% profit’ and that each crypto mining power contract ‘is guaranteed to 200% return on purchase price.’”

In addition, the companies are using a multi-level marketing network of sales agents to sell these mining contracts and recruit new agents on social media. The board emphasized:

They are also telling potential investors the crypto mining power contracts pay a ‘200% passive return on every investment.’

Furthermore, the order noted that “Although potential investors are led to believe they will receive a 200% return on principle invested in crypto mining power contracts,” Aws Mining “is now disclaiming the guarantee of profitability and instead representing that investors assume the risks associated with the investment.”

The board subsequently concluded that the companies and individuals named in the order “are engaging in other illegal, fraudulent, deceptive, and/or misleading practices in connection with the offer of crypto mining power contracts to Texas residents.”

What do you think of Texas taking action against Aws Mining? Let us know in the comments section below.


Images courtesy of Shutterstock and Texas State Securities Board.


Need to calculate your bitcoin holdings? Check our tools section.

The post Texas Takes Action Against Cryptocurrency Mining Company Promising 200% Profit appeared first on Bitcoin News.

Bitcoin News

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