Colorado State Department Of Regulatory Agencies Takes Down Four More ICOs

In the regulatory crypto news today, we can see that the Colorado State Department of Regulatory Agencies has shut down four more ICOs by ordering them to cease and desist from all activities because of violation of state finance laws.

In an official press release from the agency’s website, Securities Commissioner Gerald Rome has signed orders for ceasing eighteen ICOs in the state of Colorado and there are a couple more orders that are pending.

The four ICOs that was caught up with the cease and desist order were Global Pay Net, Cred, CrowdShare Mining, and CyberSmart Coin Invest. The first company sells coins to investors and was already mentioned in the previous DORA regulatory action for inducing investors to scam them and make unrealistic promises to the investors. The company allegedly made a promise to investors they would give them 80 percent of the company’s profits.

The second company promoted a scam on their website that promised a tokenized mobile app that supports green energy. The company promised investors huge futures returns on their investment.

Commissioner Rome explained the regulatory action:

 “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. 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.”

The other two companies both offer scam through their websites with similar scam methods as the two companies above by promising insanely high returns to their investors.