Crackdown: Colorado Regulator Takes Down Four More ICOs

Posted in: Archive
November 22, 2018 6:55 PM UTC

The Colorado State Department of Regulatory Agencies (DORA) has taken action against four more ICOs, ordering them to immediately cease and desist from carrying out all activities in violation of state finance laws.

In a November 20 press release posted on the regulator’s website, it was revealed that with these four new additions, Colorado Securities Commissioner Gerald Rome has now signed orders mandating the cessation of eighteen ICOs in the state, with at least two more orders pending.

In August, reported that the “ICO Task Force” convened in May by commissioner Rome within the Division of Securities under the aegis of DORA targeted three cryptocurrency companies namely Bionic Coin, Sybrelabs and Global Pay Net, eventually leading to similar regulatory action against them.

Affected ICOs

The four ICOs named in the order are Global Pay Net, Cred, CrowdShare Mining and CyberSmart Coin Invest. Interestingly, Global Pay Net, which purportedly sells “GLPN Coins” to investors was mentioned in the previous DORA regulatory action from August. Like in its initial mention, the company was cited for inducing investors to market the scam and making unsupported promises to investors including a promise of up to 80 percent of the company’s profits. It also made false claims including referencing professionals purportedly involved in its operations who have denied any knowledge of it, and an SEC filing claim which cannot be verified as the phone number attached to the 2011 filing is disconnected.

The second entity listed is known as Cred or Credits LLC, using a website to promote a scam that purports to be a tokenised mobile mining app supporting green energy. Based on these claims, the company markets a supposed ICO for its cryptocurrency known as “Cred” (CX). Apart from promising investors outsized future returns on their investment, it also makes a direct claim that CX tokens will have guaranteed tangible value at some point in the future, which makes it a security offering. Luke Ingraham, an individual listed as President and Director manages the security offering.

Speaking about the regulatory action, Commissioner Rome said:

“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. 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 other two entities listed are CrowdShare Mining, which operates an ICO for “CrowdShare Mining Coin (CSM) through the website, and CyberSmart Coin Invest, which offers “CyberSmart Coin (CBST) through the website Both scams use similar tactics, promising steady and unusually high returns ranging from 20 percent to 1000 percent through “secret” or specialist investment tactics.

Featured image from Shutterstock.

Last modified: May 20, 2020 2:21 PM UTC

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David Hundeyin @DavidHundeyin

I am a busy Nigerian writer, journalist and writer with an interest in tech and finance. When I'm not contributing to CCN and traveling around Africa, you can catch me contributing to CNN Africa, or in the writers room at 'The Other News', Nigeria's weekly answer to 'The Daily Show' with nearly 2 million viewers. My work on 'The Other News' was featured in the New Yorker Magazine, and that was then cited in the Washington Post so I'm not sure that counts as a feature but I'll definitely mention it too! I have been nominated by the US State Department to take part in the 2019 Edward R. Murrow Program for journalists under the International Visitors Leadership Program. I also like hamsters. You can reach me on Twitter at _David_Hundeyin

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