Colorado Regulators Crack Down on Four More ICOs

The state's "ICO Task Force" has now issued 12 cease-and-desist orders since May of this year.

AccessTimeIconNov 9, 2018 at 8:15 p.m. UTC
Updated Aug 18, 2021 at 10:12 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Colorado regulators took action against four ICOs Thursday, bringing the state's total number of cease-and-desist orders against crypto startups to 12.

The state's "ICO Task Force" rebuked Bitcoin Investments, Ltd, PinkDate, Prisma and Clear Shop Vision Ltd. Where the companies are based is unclear, a spokeswoman for Colorado's Division of Securities told CoinDesk, though the unregistered securities they promoted were available to Colorado residents.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Colorado Securities Commissioner Gerald Rome told CoinDesk:

    "We want to ensure that the state's securities market and the investors that operate within it are protected from unscrupulous actors that are taking advantage of the enthusiasm surrounding this field to perpetrate fraud and in some cases outright theft. There are many companies in Colorado that are working hard to conduct their ICOs the right way, and we are eager to continue working with them to build a regulatory framework for the industry as it relates to securities."

    Rome added that the enforcement action is meant to advance Colorado as an "innovative leader" in the cryptocurrency space. Though the state's ICO Task Force has been active since May, the cease-and-desist orders come just days after Colorado elected a crypto-friendly governor in Congressional Blockchain Caucus member Jared Polis.

    More U.S. state regulators are taking action against potentially fraudulent token sales. Earlier this week Texas issued emergency cease-and-desist orders to crypto mining firms based in Australia and Canada.

    As CoinDesk reported in August, a coalition of North American securities regulators is conducting more than 200 investigations. The so-called "Operation Cryptosweep" – which the Colorado Division of Securities is participating in – is meant to stifle cryptocurrency scams.

    "You're starting to see now the results of those investigations," said Bob Webster of the North American Securities Administrators Association (NASAA), which is playing a coordinating role in the Cryptosweep effort.

    Webster says Colorado is among the more active jurisdictions in the U.S., along with Texas, North Dakota and Massachusetts.

    Anthony Tu-Sekine, who heads up the cryptocurrency arm of law firm Seward & Kissel LLC, says a number of state regulators are jumping into the fray to combat what are often "thinly disguised Ponzi schemes."

    Colorado State Capitol image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.