Colorado State Securities Commissioner Gerald Rome has issued a cease
and desist order to four Initial Coin Offerings ( ICOs ) for allegedly
offering unregistered securities, according to an official notice
published Nov. 8.
The orders come as part of a state operation by the “ICO Task
Force” within the Department of Regulatory Agencies (DORA), which
in May of this year commenced investigations into potentially
unlawful activity targeting cryptocurrency investors. With yesterday’s
orders, DORA has now issued 12 cease and desist actions against ICOs.
On Nov. 8, Rome signed four orders to Bitcoin Investments, Ltd. —
which is also conducting business as DB Capital — PinkDate, Prisma,
and Clear Shop Vision Ltd.
Per the notice, Bitcoin Investments claims to be a blockchain
investment firm with over $700 million assets under management
across multiple funds. The company allegedly promised its customers
over one percent daily returns along with additional returns on
internal trading of the “DB Token.”
The company reportedly claimed that “the average registered
investment return over a two month period in 2017 was an amazing 95
percent,” while its ICO lists a number of celebrity promoters.
Bitcoin Investments’ website reportedly deploys the same format,
visual content, and employee team as the U.S. Securities and Exchange
Commission’s ( SEC ) educational site about related risks for
potential crypto investors. Per the statement, DB Token ICO has not
been registered as a security with the Division of Securities.
“Anonymously-operated, worldwide escorting service[s]” company
Pinkdate allegedly seeks to fundrise more than $5 million via an ICO
in tokens referred to as PinkDate Platform (PDP). The statement says
that the firm promises investors “50 percent of Net Profits through
dividends” in Bitcoin ( BTC ), Ethereum ( ETH ), Monero ( XMR ), or
Bitcoin Cash ( BCH ). The PinkDate ICO allegedly has not been
registered with the Division of Securities.
As for Prisma, its website allegedly requires users to buy its native
crypto Prismacoin (PRIS) to use a proposed lending and arbitraging
investment platform, through which investors could ostensibly profit up
to 27 percent on their initial investment. The “arbitrage bot” is
claimed to generate returns of up to 1.5 percent daily.
The last company on the list, Clear Shop Vision, Ltd, has promoted
three ICOs since June 2018 and offered “ORC Token” with a
“serious appreciation potential.” The company’s site allegedly
directs investors to send ETH directly to Clear Shop’s ETH wallet,
but not through a crypto exchange.
Per the notice, all mentioned companies have to immediately cease and
desist all alleged violations of the Colorado Securities Act, including
unregistered securities and fraud.
and desist order to four Initial Coin Offerings ( ICOs ) for allegedly
offering unregistered securities, according to an official notice
published Nov. 8.
The orders come as part of a state operation by the “ICO Task
Force” within the Department of Regulatory Agencies (DORA), which
in May of this year commenced investigations into potentially
unlawful activity targeting cryptocurrency investors. With yesterday’s
orders, DORA has now issued 12 cease and desist actions against ICOs.
On Nov. 8, Rome signed four orders to Bitcoin Investments, Ltd. —
which is also conducting business as DB Capital — PinkDate, Prisma,
and Clear Shop Vision Ltd.
Per the notice, Bitcoin Investments claims to be a blockchain
investment firm with over $700 million assets under management
across multiple funds. The company allegedly promised its customers
over one percent daily returns along with additional returns on
internal trading of the “DB Token.”
The company reportedly claimed that “the average registered
investment return over a two month period in 2017 was an amazing 95
percent,” while its ICO lists a number of celebrity promoters.
Bitcoin Investments’ website reportedly deploys the same format,
visual content, and employee team as the U.S. Securities and Exchange
Commission’s ( SEC ) educational site about related risks for
potential crypto investors. Per the statement, DB Token ICO has not
been registered as a security with the Division of Securities.
“Anonymously-operated, worldwide escorting service[s]” company
Pinkdate allegedly seeks to fundrise more than $5 million via an ICO
in tokens referred to as PinkDate Platform (PDP). The statement says
that the firm promises investors “50 percent of Net Profits through
dividends” in Bitcoin ( BTC ), Ethereum ( ETH ), Monero ( XMR ), or
Bitcoin Cash ( BCH ). The PinkDate ICO allegedly has not been
registered with the Division of Securities.
As for Prisma, its website allegedly requires users to buy its native
crypto Prismacoin (PRIS) to use a proposed lending and arbitraging
investment platform, through which investors could ostensibly profit up
to 27 percent on their initial investment. The “arbitrage bot” is
claimed to generate returns of up to 1.5 percent daily.
The last company on the list, Clear Shop Vision, Ltd, has promoted
three ICOs since June 2018 and offered “ORC Token” with a
“serious appreciation potential.” The company’s site allegedly
directs investors to send ETH directly to Clear Shop’s ETH wallet,
but not through a crypto exchange.
Per the notice, all mentioned companies have to immediately cease and
desist all alleged violations of the Colorado Securities Act, including
unregistered securities and fraud.
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