The Department of Regulatory Agencies (DORA), Colorado has gathered an “ICO Task Force” to investigate three cryptocurrency companies believed to have been promoting fraudulent Initial Coin Offerings (ICOs).

The task force consists of members of the Division of Securities and has been put together on the orders of the Commissioner Gerald Role, in May 2018. The three companies under investigation are Bionic Coin, Sybrelabs Ltd. (also known as Crypto ARB) and Global Pay Net (otherwise known as GLPN Coin and GPN Token).

The cryptocurrency market is rife with such companies looking to make quick cash by using bogus schemes to lure investors. The Task Force is intended to protect Colorado residents from this and other cryptocurrency scams.

Bionic Coin:

Bionic Coin is the largest firm, among the three, that is under investigation. It was advertised as a token aimed at

enabling instant payments to anyone, anywhere in the world, and simplifying the purchase of electronic devices and software.

The BNC website claims to “grow your money without any effort” and boasts of associations with media agencies such as Forbes. Their claims have so far proved false since no trace of such associations has been found.

It also offered a questionable incentive program where a maximum of ten thousand tokens was awarded to users for promoting BNC with a social media or blog post.

Sybrelabs Ltd.

The second company, under scrutiny, is Sybrelabs Ltd which is allegedly based out of Cambridgeshire county in England. Through its website cryptoarb.org, it encourages users to trade cryptocurrencies using a shared investment pool with the help of a “cryptoarbitage robot”.

According to DORA, for a minimum investment of $25, large shares of the profit were on offer; the company canvassed “active investment portfolios” starting at $25000 in value.

3 Unregistered ICOs Under Investigation by Colorado Authorities

Global Pay Net

Lastly, Global Pay Net was involved in promoting its token GLPN with plans to set up an alleged international blockchain-based financial platform. It also claimed to offer the investors a share of 80% of the company’s profits.

Many cryptocurrency professionals were listed as being involved with the company, two of whom have since denied all involvement. The firm also offered rewards of up to 5000 GLPN coins for promoting it on social media. The company is apparently located in Washington, where its supposed filing with the US Securities and Exchange Commission (SEC) was done. This has not been verified.

On August 24, 2018, all three companies were required to come to court in order to “show cause” and defend their business dealings. However, none of the companies’ representatives showed up on the day of the hearing.

Because of the lack of response on the companies’ parts, the case has been presented to an administrative law judge. It will be determined if the evidence brought forth by the Division is substantial following which a “cease and desist” order might be rendered by the Governor.

Since then, Bionic and Global Pay Net have put an end to their Initial Coin Offerings whereas the Sybrelabs website has vanished entirely.  This press release has come in the wake of other companies, such as Bitcoin Investments Ltd. (also known as Db Capital), Estatex, Bitconnect Ltd., and Magma Foundation (also called Magma Coin), receiving similar orders.