Colorado Cracks Down On 2 Companies For Illegal ICO Promotion

The Colorado Department of Regulatory Agencies (DORA) announced its investigation of two companies for promoting unlawful Initial Coin Offerings (ICOs) to Colorado residents, the Denver Post reported May 3.

DORA unearthed that Linda Healthcare is boosting a "LindaHealthCoin" Ignore on its site, which apparently is utilised to purchase Linda Healthcare's insurance. Based on the website, the token can find telemedical policy "through an artificial intelligence chat service that makes medical solutions through usage of blockchain technology.

According to DORA, Linda Healthcare provides no warnings that ICOs constitute a security in the country of Colorado. "The Linda medical health insurance network is also thus far, perhaps not in performance," officials reported.

A March 19 tweet from the business sends potential clients to consult with its white newspaper. As Denver Post reports, Broad Investments business is supposedly boosting cryptocurrency utilizing a token that is described on its web site as "an equity coin which symbolizes stocks of the business, such as stocks."

The token would apparently give holders the right to a share returns from Broad Investments' plan, which assembles stock portfolios with an algorithm. DORA representatives reported that both businesses failed to offer some advice on the dangers of investing in crypto or ICOs in their websites.

Colorado Securities Commissioner Gerald Rome commented that investments in ICO tokens should really be carried out carefully: "Investment opportunities being sold through ICOs across the internet have to be approached with the same level of upkeep for any exceptionally risky investment enterprise "The businesses need to now establish the shouldn't be sanctioned under the Colorado Securities Act, in accordance with which the firms will probably receive cease and desist orders.