The Colorado Regulatory Agency (DORA) has reportedly investigated two companies promoting illegal ICO services for Colorado residents, the Denver Post reported on May 3.
DORA is trying to track down illegal ICO promoters
Colorado State Securities Commissioner Linda Healthcare Corp. in California and Broad Investments LLC may have the potential to violate Colorado securities laws by promoting the ICO.
DORA found that Linda Healthcare was advertising the "LindaHealthCoin" token on its website, which could be used to purchase Linda Healthcare's insurance. According to the site, the tokens can purchase telemedical insurance "through an artificial intelligence chat service, creating health solutions through the use of blockchain technology."
According to DORA, Linda Healthcare does not warn that ICO investments will constitute a security breach in Colorado. "The Linda Health Insurance Network, so far, is not working," officials said. A March 19 tweet of this company leads prospective clients to their white page.
Broad Investments is reportedly promoting electronic money using the token described on its Web site as "a share capital representing the company's shares." , function as stock of the company. "
DORA representatives reported that neither company provided any information about the risk of investing in electronic money or ICO on their websites. Colorado State Securities Commissioner Gerald Rome commented that the investment in the ICO code should be done carefully: "The investment opportunity that is sold through ICO over the internet should be approached with caution as for any venture investment venture ".
Companies must now prove that they are not in violation of the Colorado Securities Act, requiring companies to receive a recall order and resume operations.
In early March, the Massachusetts Securities Agency issued an injunction requesting a permanent suspension of five companies that had not yet registered with the ICO.