In Colorado, an Investigation is Opened Against Three Cryptocurrency Companies
The authorized representative in matters of securities in Colorado, Gerald Roem, announced the beginning of an investigation that will be conducted over three crypto exchanges. The latter is credited with helping unregistered ICOs. Companies must provide all necessary documentation in connection with the order issued on Tuesday.
According to this order, a state investigation will be conducted over "what has become a trend among fraudulent companies wishing to make quick money". The investigation will be conducted under the aegis of the securities department, which is part of the Department of Regulatory Agencies (Department of Regulatory Agencies, DORA).
According to the regulator, the companies that will be investigated have deceived investors wishing to purchase tokens during the ICO, not fully or incorrectly reporting information about their products and services.
For example, the cryptocurrency platform Bionic indicated one of the key media partners of Forbes, but the regulator didnєt find evidence of this fact. And Global Pay Net even pointed in its ranks to crypto experts who didn't confirm participation in the project. DORA officials also stated that none of the companies provided information on the risks of investing in the ICO.