The initial coin offering (ICO) sector has evolved rapidly in such a short space of time. It was only at the beginning of 2017 that it started to become a legitimate way in which startups and established companies could raise funds for their business.
The authorities across the world were largely caught off guard by this sudden explosion in growth and they were unprepared for it. There were little to no rules or regulations in place and many people in the sector could do as they pleased.
Thankfully, that gradually started to change and the authorities developed rules and regulations for the sector, as well as actively getting involved in specific cases, shutting down errant ICOs as they saw fit and pressing charges and filing lawsuits against ICOs that had been held previously.
The United States Securities and Exchange Commission (SEC) has particularly been going after errant ICOs as of late, making it a big priority of theirs for the year. Now the authorities in Colorado have announced new orders that they have issued against three different crypto startup firms.
What are the details about these issued orders?
It is the Colorado Securities Commission that has issued orders against three different crypto startups that are alleged to have offered, as well as promoted ICOs which were not registered with the state authorities.
This is part of a wide ranging state crackdown when it comes to ICOs which do not follow the appropriate guidelines and the state’s Department of Regulatory Agencies are playing a key role in this.
This task force has been in operation since May and in that time they have identified potential violations of state securities laws, those ICOs which appeared to be fraudulent and one in which investors were not being adequately protected.
The crypto startups in question that they have now issued orders to are Sybrelabs Ltd, Bionic Coin, as well as Global Pay Net.
They have in the past already issued orders against four other errant companies, the Magma Foundation, Bitconnect, EstateX and DB Capital.
It is good to see that investors are receiving some protection from the authorities and errant ICOs are being gone after.
There is a more widespread operation throughout the entire country called Operation Cryptosweep that is now targeting more than 200 ICOs in the region, currently investigating each of them.