Three cryptocurrency firms are under investigation in Colorado.
The Colorado Department of Regulatory alleges that the firms are promoting unregistered Initial Coin Offerings in the state. The cryptocurrency companies under investigation include Bionic Coin, Global Pay Net, and Sybrelabs Ltd.
“As part of an investigation into what has become a trend of allegedly fraudulent companies looking to make quick money.”
All three are now expected to appear in court to answer charges of fraud. The Department of Regulatory Agencies (DORA) already presented a case to a administrative law judge.
About the Cryptocurrency Firms
Sybrelabs Ltd (Cryptoarb) is said to be located in England and is said to be promoting the use of cryptoarbitrage robot while trading on exchanges.
Another one, Cryptoarbitrage robot is a tool that enables firms to automate most of the factors including transactions. This firm signs member and encourages then to promote the tool by adding more members. According to the company’s website, it guarantees maximum profits for participants. The payment range from $25 for participation.
Bionic Coin on its part has been providing information about its ICO called Bionic.
According to its whitepaper, it’s a platform that will enable instant crypto payments to everyone. Bionic also promises to grow the money of its investors without much effort. The company’s website lists Forbes Magazine as its partner. However, after investigations, DORA could not locate references of any company. The company has also been encouraging its members to popularize the coin. It promises to pay 10,000 bionic tokens to people who popularize the coin on popular platforms.
Global Pay Net on its part its marketing an ICO for its coin. Two of the professionals with whom the company had listed as some of the professional associated to it have denied any involvement in the project.
The company had also claimed to have registered with SEC a claim that could also not be verified.
Cryptocurrency and Blockchain firms are on the rise
Very few of them are credible and not all of them exist after the ICO. A study carried out in May this year revealed than only 4% of all ICOs become successful. The study also revealed that 74% of ICOs turn out to be scams. ICOs have led to massive losses of money by investors something which has led to countries like China banning them completely.
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