In the realm of cryptocurrency and ICO world, we hear regulators caught the scams and fake firms. As such, The Colorado Division of Securities issued cease and desist order to two crypto firms for not registering their coins as securities in the state. Since according to regulators, coins are treated as securities. Therefore it must be registered as securities within the state and if not, it may be fraudulent.
The two companies caught by regulators
Davor and Cyber Capital Investment. According to release, officials found the ICOs of these firms are subjected to a potential fraud risk. Moreover, investors under Davor’s DavorCoin has been promised to obtain a return as high as 10 percent every month. The coin has been promoted as the competitor to leading cryptocurrencies – Bitcoin and Ethereum. Whereas the another token “Cyber Capital Invest’s CCI tokens are being advertised to share regular returns as high as 2 percent.
CyberCapitalInvest – The website claims it aims as
“to help people who would like to trade on the cryptocurrency market but due to a lack of experience or skills, do not know how to get started”
Davor – The firm brand itself as the
“a new cryptocurrency which aims to become the best alternative to current popular coins such as Bitcoin and Ethereum”
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