American watchdogs engaged in a study of three initial coin offering (ICO) projects, which offer their clients to invest money in tokens. The investigation is carried out by the Division of Securities of the Colorado Department of Regulatory Agencies (DORA) and of the state’s ICO task force.
Colorado Securities Commissioner Gerald Rome said that there are three suspicious cryptocurrency companies in the state that are attracting funds to their projects. If the regulators prove that they engage in placing fake tokens, then the authorities will be able to achieve termination of these enterprises in the state through court.
Bionic Coin, Sybrelabs Ltd. (also known as Cryptoarb) and Global Pay Net (also known as Glpn Coin and Gpn Token) were included in the list of suspicious ICO projects. Their representatives do not comment on the investigation.
WHY IS IT IMPORTANT?
- ICO task force was established by the Colorado State authorities in May this year to identify companies and individuals who offer to buy digital assets. The group's activities aim at reducing the risks of fraudulent ICO-projects.
- The new investigation has become part of a growing trend towards fraudulent companies that are willing to quickly earn unfairly. All three firms could not appear at the hearing to provide evidence in accordance with the order of the Commissioner.