Colorado Division of Securities stops ICOs for alleged illicit practices

The cease and desist orders follow some investigations by the Division’s ICO Task Force. 18 cessation orders were issued to ICO projects offering unregistered securities since May 2018, and at least two more orders are still pending.

The recent orders affected four crypto and blockchain-related firms: Global Pay Net, Credits LLC, CrowdShare Mining, and CyberSmart Coin Invest. All the companies were reportedly accessible to Colorado residents and allegedly violated securities laws and engaged in fraudulent marketing practices. For instance, Global Pay Net allegedly falsely claimed that investors receive 80% of the company’s profits, while CrowdShare Mining promised an at least 1,000% four-year return on investment for investors who bought its token.