STATE TELLS 2 FIRMS TO CEASE SALES OF CRYP­TOCUR­RENCY

The Denver Post - - BUSINESS - — Joe Ru­bino, The Den­ver Post

The Colorado Di­vi­sion of Se­cu­ri­ties has sent two com­pa­nies ad­ver­tis­ing cryp­tocur­rency sales cease and de­sist or­ders be­cause they have not reg­is­tered their coins as se­cu­ri­ties in the state and may be fraud­u­lent, ac­cord­ing to reg­u­la­tors.

Da­vor and Cy­ber Cap­i­tal In­vest­ment are the lat­est cryp­tocur­rency com­pa­nies to draw at­ten­tion from state se­cu­ri­ties com­mis­sioner Ger­ald Rome af­ter mem­bers of his staff as­signed to a spe­cial task force iden­ti­fied their ini­tial coin of­fer­ings — or ICOs — as po­ten­tial fraud risks, ac­cord­ing to a news re­lease.

Da­vor’s Da­vorCoin is be­ing mar­keted as a com­peti­tor to name­brand dig­i­tal cur­ren­cies like Bit­coin and Ethereum. Po­ten­tial in­vestors in the ini­tial of­fer­ing have been promised re­turns as high as 10 per­cent per month, ac­cord­ing to the state.

Cy­ber Cap­i­tal In­vest’s CCI To­kens are be­ing ad­ver­tised as “profit share” coins with guar­an­teed daily re­turns as a high as 2 per­cent.

Both ICOs are be­ing ad­ver­tised on web­sites that as of Fri­day af­ter­noon re­mained ac­ces­si­ble to Colorado res­i­dents.

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