4 Unregistered Crypto Companies were Shut Down by Colorado’s Division of Securities

Colorado’s division of securities has officially issued cease-and-desist warnings to four different companies that have their own ICO or “securities” offerings. Each of these companies was operating within the state of Colorado and they were shut down as the result of an investigation performed by an ICO task force. The division of securities has been cracking down on companies offering their own digital coins without proper registration for the issuance of such securities.

Companies that are involved included the following:

Pinkdate: Pinkdate is a company that was delivering escort services as well as the option for dividends on the exchange of currency sitewide. Customers were offered Bitcoin, Ether, Monero and their own ICO for their investment in the platform. The overall goal of Pinkdate was to offer a quality platform that would be untraceable for transactions between escorts and their clients.

Prisma: As a lending platform, the company was offering the perfect solution for investing in arbitrage within Colorado. The site was an investment bot with its own securities and the possibility to produce 1.5% returns daily. They did not register with the division of securities either.

Bitcoin Investments LTD: Perhaps one of the largest orders was against this company, they were responsible for managing over $700 million worth of cryptocurrency across their exchanges and they had their own token. Investors could use this platform for trading but the company operated without properly registering through the division which led to its eventual shutdown.

The Clear Shop Vision: The clear shop had their own initial coin offering up since 2018 in June. ORC tokens were their offering of choice and they also had their own shopping within the platform. The marketplace for services here was allowing freelancers and marketers an easy path to generate wealth online and to get access to referrals throughout the platform.

Each one of these companies was issued a notice to cease and desist because of their failure to properly register for their securities license within the state of Colorado. The process of starting one of these businesses is something that can often take months if it is going to be done legally. If you are planning on launching one of these platforms in the future it remains crucial for you to check into full requirements of the law for your state or governing body. A failure to go unregistered could put you at risk for countless fines and the full shutdown of your company.

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