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Colorado Regulators Issue Show Cause Notices to Three Crypto Companies

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The Colorado Department of Regulatory Agencies (DORA) has issued show cause notices to three crypto firms that are allegedly promoting unlisted ICOs. These three companies are Bionic Coin, Sybrelabs Ltd. and Global Pay Net.

A show cause order requires a company to explain a procedure or justify something. The orders were sent on August 24th; however, none of the companies were present to defend their cases. A representative from DORA explained that the case was transferred to an “administrative law judge, who must determine within 2 weeks whether the case made by the Division represented factual evidence.”

According to the recent press release published by DORA, Bionic Coin provides information about an ICO with a token titled “Bionic” or “BNC”. The press release stated, “The site … promises ‘Bionic will grow your money without any effort.’ The site also lists supposed media partners such as Forbes magazine, but investigators could not locate any reference to such a company or product on the sites purportedly promoting it.”

Sybrelabs Ltd. allegedly promotes an “unregistered security to Colorado residents in the form of an investment pool that allows for trading on cryptocurrency exchanges through what is represented as a ‘cryptoarbitrage robot,’ or a tool that would allow the company to ‘automate many factors occurring with effective arbitrage on several instruments’.”

Global Pay Net sells “GPN Coins”, which “are ‘full-value assets that represent one’s share in the business’ and that ‘investors receive 80 percent of the company’s profits.’ The site also lists multiple cryptocurrency professionals as being involved, two of whom have denied that this is the case.”

If the companies fail to justify their ICOs, they will receive cease and desist orders from the regulators. DORA previously issued similar orders to other crypto companies such as EstateX, Bitconnect Ltd., Magma Foundation, and Bitcoin Investments Ltd.

Image Credit: Deposit Photos

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