Three cryptocurrency firms are allegedly under investigation conducted by The Colorado Department of Regulatory Agencies. The reason behind these investigations is to know their part in encouraging unregistered coin offerings in Colorado State. These investigations are among the growing cases of fraud companies which are on the look-out for quick money.
Recently the firms were to show up at a hearing ordered by the Commissioner for further details and failed to make an appearance. The three firms discussed here are the Bioconic Coin, Sybrelabs Ltd. and Global Pay Net who received the appearance invitation.
The member of state’s ICO (Initial Coin Offerings) teamed up with Division of Securities of the Colorado Department of Regulatory Agencies (DORA) are responsible for conducting and investigating these three cryptocurrency firms blamed for promoting illegal ICO’s in Colorado.
This task force formed in May for identifying those individuals and companies who are a threat to the Colorado investors. The agencies announced a statement on Monday stating that the reason for carrying out this investigation is to identify fraud companies looking for making quick money. As a result, Gerald Rome, the Colorado Securities Commissioner has signed a new order for showing the cause of all these cryptocurrency companies.
Previously the order was received by the companies Bitcoin Investments Ltd. (also Db Capital), Estatex, Magma Foundation (also Magma Coin) and Bitconnect Ltd. The recently released orders received by the companies mentioned above, Sybrelabs Ltd. (also Cryptoarb), Bioconic Coin and Global Pay Net (also Glpn Token and Glpn Coin).
All the recipients are expected to explain, justify and prove their case to the court as they have received an order to show their cause to the court.
DORA spokesperson also reported to news.bitcoin.com that the hearing for showing cause took place on 24 August, Friday where none of the above-listed companies responded or attended. There might not be another hearing, and because of the absence of any firms, the case now passed on the administrative law judge who must acknowledge an answer within two weeks.
If the case made by Division is representing factual evidence, the Commissioner can subject immediate cease and terminate orders.
The website of Bioconic Coin gives information regarding ICO for BNC or bionic. BNC is an ERC20 token which focuses on allowing instant payments to anyone and anywhere in the world. It aims at simplifying electronic purchases of software and devices, says the agencies. But there isn’t any physical address or any person in control is identified on the site.
Moreover, the site lists that Bionic will not only grow your money effortlessly but also teams up with Forbes magazine as their media partner. Now the investigators are unable to trace any reference to that company or the product which the site seems to be reportedly promoting.
The reason why the agencies offered the investigation to Bionic Coin is that their site attempts to advertise the coin by saying that the customers who will post their ongoing investments on famous social media websites will receive up to 10,000 tokens as a gift for each post.
Another cryptocurrency company under investigation is the Sybrelabs Ltd., which also works under the name Cryptoarb, locates in England. Their website is famous for promoting an investment pool which allows cryptocurrency exchanges and trading by utilizing the “cryptoarbitrage robot” apparatus. It is a device which allows the company in automating several factors that occurs as a result of effective arbitrage on top of several other tools.
Moreover, Sybrelabs also motivates its consumers for promoting their investments as well as appoint other users by offering them token products and marketing resources. The agency says that the website allegedly proposes whooping percentages of profit in exchange for a nominal membership at $25.
It also offers active investments in portfolios of and more than $25,000. As a result, the company website of Sybrelabs Ltd. has received the court orders for cause where it failed to prove its presence.
Global Pay Net
The third company to receive the memorandum is the Global Pay Net which has the ICO market for trading the glpn coins. The company is reportedly providing an international financial platform which has the basis of blockchain technology according to the agency announcement.
These tokens define as the full-value assets which represent the individual’s business share. The investors are reportedly meant to receive about 80% of the company’s profit. Moreover, Global Pay Net is also responsible for offering incentives for promoting the ICO in a state of 5,000 glpn coins per online forum or social media post.
The website of the company also states multiple cryptocurrency professionals who are involved in the exchange but now denies involvement. Even a U.S. Securities and Exchange Commission (SEC) filed a claim is incapable of being verified this moment. Also, the agency states that there is no business registration is the state of Washington which the company claims as its location.
Share us your views about the investigations and the companies listed in the case. What do you think should be the next step by the state government and are the companies fraud?