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.
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
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Analysis: What 2019 Could Bring for Bitcoin
Trading in altcoins was a big part of what made Bitcoin price spike towards the end of 2017. A section of the crypto space argues that while altcoins helped Bitcoin’s market cap swell, they also bro
Bitcoin Cash Going Down as Stellar Warms up
Bitcoin Cash’s market cap has been cut in half since the Nov. 15 hardfork which birthed the Bitcoin ABC and Bitcoin SV chains. Now at a mere $3.5 bln and a unit price of ~$201 as at the time of writ
300k User Data from Chinese Auto Finance Platform Sold For One Bitcoin on Dark Web
It is revealed that 300,000 pieces of user data from a Chinese auto finance platform Jiurong were compromised and priced at one bitcoin on the dark web.
According to the leaked data posted, persona
Heyday of Bitcoin Mining Rigs Business at China’s Huaqiangbei is Over Amid Crypto Market Carnage
Bitcoin price slumped to a 13-month low of about $4,300 on Wednesday, making mining the world’s leading digital currency an unprofitable business. A lot of mall miners, mining rigs dealers and minin
Dialogue with Bitcoin Evangelist in Latin America: RSK Labs CEO Diego on Crypto Industry
Diego Gutierrez is the CEO at Koibanx and president of Bitcoin Argentina NGO. In addition, Diego also serves as the CEO of Rootstock/RSK Labs, a smart contract platform built on top of bitcoin.
China’s Bitcoin Billionaire Zhao Dong : Bitcoin Price to Hit $50,000 in Three Years—Now Is the Time to Buy the Dip
Despite Bitcoin’s latest crash and a real chance that its price will go much lower, Zhao Dong, prominent Chinese OTC trader and founder of Dfund, remains bullish on the the world’s biggest cryptoc
Bitcoin Miners Sold by Kilo in China Amid Cryptocurrency Crash
The leading cryptocurrency bitcoin once fell below $4,300 on the afternoon of November 20 – down more than 17% on a 24-hour basis and hitting a 13-month low since October 2017. Great losses are seen
Xiao Lei: 3 Main Reasons of the “Unreasonable” Bitcoin Price Crash
Cryptocurrency markets experienced a havoc in the past few days. Bitcoin, the uncrowned king in the crypto world, has fell as much as 30% over the past two weeks, while other major tokens are all suff