US Authorities Closed Another 4 ICOs
The Colorado State Department of Regulatory Agencies (DORA) decided to close 4 more ICOs. According to the regulator, they are nothing more than a scam designed to deceive investors.
Global Pay Net is one of the sanctioned crypto projects. According to DORA, a crypto startup has lured investors into a scam, providing unsubstantiated promises. For example, Global Pay Net stated that investors would receive up to 80% of the company's revenues. It is unclear how the company will get revenues. Global Pay Net also indicated that professionals and industry leaders are involved in the project. But the “gurus” themselves did not even know about the existence of the project.
Credits LLC is the second project. According to the regulator, it lured investors by promoting “tokenized mobile mining supporting green energy”. The project even held an ICO, during which it promised investors that the price of the Cred token will increase with time. Because of this promise, ICO can be considered as securities offering, according to US laws.
CrowdShare Mining and CyberSmart Coin Invest are the last two projects. They offered significant returns, which ranges from 20 to 1000%. Contributors just had to use the “secret” investment tactics of projects.
In total, DORA imposed sanctions on 18 ICOs. Two more are being tested at the moment.