"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 Division of Securities in Colorado has issued four orders alleging initial coin offering (ICO) fraud.
These orders mark eighteen that have been signed by Colorado Securities Commissioner Gerald Rome, with at least two more pending, the announcement revealed. The companies charged with ICO fraud include Global Pay Net, CrowdShare Mining, CyberSmart Coin Invest, and Cred LLC (operating as Credits).
The orders are the result of an investigation run by what the division dubbed their "ICO Task Force." The investigation concluded that the companies neglected to register as securities and have committed fraud by providing false data on their websites.
Commissioner Rome stated that, "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." He went on, warning,
The companies listed in these four new filed cases have been instructed to cease and desist all activity that is constituted as a violation of the Colorado Securities Act.