Gerald Rome, the Colorado Securities Commissioner, recently issued orders against three crypto startups to show cause of the allegations of offering and promoting unregistered ICOs in the state.

The issue was a part of an investigation that is, in turn, a part of the efforts of the Division of Securities officials under the Department Of Regulatory Agencies (DORA) of the State of Colorado. The Securities Division is out to suppress fraudulent ICOs.

The Securities officials are part of Commissioner Rome’s “ICO Task Force,” which was formed last May. The task force was mandated to determine individuals and companies with deceitful activities.

It’s also their task to find out unregistered businesses that might present an investment risk to consumers. In the latest order issued by the task force, the three companies included were Sybrelads Ltd., Bionic Coin, and Global Pay Net.

In the past, several companies received the same orders, which are EstateX. Magma Foundation, Bitconnect, and Bitcoin Investment Ltd. In the recent order, Bionic Coin was said to promote an ICO called “BNC” or “BIONIC.”

The ICO promises to permit anyone to make immediate cross-border payments. Additionally, the ICO pledges to streamline the process for purchasing electronic devices and software. The BNC site also provides information related to investing in the ICO.

Another of its promises is that investors can enjoy returns without effort. One of the things the investigation found out is that the listed media partners in the ICO site were false. There were not any references about the company on any sites listed on the website.

The ICO site also incentivizes its users to promote it on their social media accounts. The promise was for the users to receive up to 10,000 BNC tokens for every post. Besides these, another of the concerning matters regarding the ICO is the lack of control person or physical address identified.

The other two crypto startups have almost the same situations, which puts it at odds with Colorado’s Securities Task Force. The other crypto startups show a list of media partners, but the claimed partners don’t seem to be affiliated with the crypto. They have also been offering massive profit in exchange for bare participation.

All three companies offer inducements to potential users to promote the use of the ICOs in personal social media accounts. At the same time, the startups offer marketing materials on their sites.

In accordance to the spread of fraudulent crypto activities, the North American Securities Administrators Association (NASAA) started an initiative called “Operation Cryptosweep” to lead an active investigation on more than 200 ICOs all over North America.