Is there something in the Colorado water, or is it the Rocky Mountain air?
The state’s Division of Securities has issued cease-and-desist orders against four more allegedly fraudulent initial coin offerings (ICOs), bringing the total to 20. According to the regulator’s press release, the busted companies are Global Pay Net, Cred (doing business as Credits LLC), CrowdShare Mining and CyberSmart Coin Invest.
The companies all allegedly placed fraudulent statements on their websites with unverified data, false promises, claims of excessively high profits and dividends, insufficient disclosures and misrepresentation of facts.
All 20 alleged fraudsters were found thanks to the ICO Task Force created just this past May to “investigate potentially fraudulent activity targeting investors excited about the prospects of financial windfall through the cryptocurrency market,” according to the regulator.
“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,” said Securities Commissioner Gerald Rome.