The Colorado Division of Securities has issued more cease and desist orders against allegedly fraudulent initial coin offerings (ICOs).
Colorado Securities Commissioner Gerald Rome has now signed orders for 18 ICOs, with the latest ones targeting Global Pay Net, Cred (doing business as Credits), CrowdShare Mining and CyberSmart Coin Invest. There are also at least two more pending.
This is the result of investigations by an ‘ICO Task Force’ convened within the division, part of the Department of Regulatory Agencies (DORA), in May of this year.
“The sheer number of orders entered against ICOs should be a red flag to all investors that there is a real risk that the ICO you are considering is a fraud,” says Rome. “Our investigations show that there are fraudsters who will simply create a fake ICO to steal investors’ money, or spoof a legitimate ICO to trick investors into wrongfully paying them.”
Further details on the latest batch of cease and desist orders here.