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ICO News: Colorado ICO task force issues fraud orders to three companies

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This comes as part of an ongoing clampdown on ICO fraud in Colorado following growing reports of fraud.

The investigations are being conducted by members of the Division of Securities, which is part of the Department of Regulatory Agencies (DORA).

These members have formed an ‘ICO Task Force’, convened by the Commissioner in May with the purpose of identifying companies or individuals that might pose a risk to Colorado investors.

The companies that received the orders are Bionic Coin, Sybrelabs Ltd. (also known as CryptoARB), and Global Pay Net (also known as GLPN Coin and GPN Token.

Previous orders were submitted to Bitcoin Investments Ltd. (also doing business as DB Capital), EstateX, Bitconnect Ltd., and Magma Foundation (also doing business as Magma Coin).   

Bionic Coin

Bionic Coin’s website,, accessible by Colorado residents, provides information for an ICO named ‘Bionic’ or ‘BNC’, the purpose of which is to enable instant payments to anyone, anywhere in the world, and to simplify the purchase of electronic devices and software.

Bionic coin

The site has information regarding the sale of its tokens, a whitepaper, blogs, and frequently asked questions, and promises: “Bionic will grow your money without any effort.”

The site also lists supposed media partners such as Forbes magazine, but investigators could not locate any reference to such a company or product on the sites purportedly promoting it.

This is a common trick used by ICO fraudsters; they falsely claim affiliation with a well-known, trusted company or brand to gain investors’ trust.

The site also attempts to incentivize users into promoting Bionic by stating that individuals who post to popular social media sites and blogs will receive up to ten thousand tokens per post.


Sybrelabs Ltd., allegedly located in Cambridgeshire, UK, also promotes an unregistered security to Colorado residents.

Image result for cryptoarb

This is in the form of an investment pool that allows for trading on cryptocurrency exchanges through what is represented as a ‘cryptoarbitrage robot’, or a tool that would allow the company to ‘automate many factors occurring with effective arbitrage on several instruments’.

The site,, offers large percentages of profits for a minimum participation of $25.00, and all the way up to soliciting ‘active investment portfolios’ of $25,000 or more.

Similar to Bionic Coin, this site also encourages members to promote the investment pool and solicit others to join by providing marketing materials that include a PDF presentation, online banners, and souvenir products.

Global Pay Net

Global Pay Net is a company marketing an ICO via

Image result for global pay net

This site, which is accessible by Coloradans, purports to sell ‘GLPN Coins’, which allegedly provide an international financial platform that is based in blockchain technology.

A description of the coin offering states that GLPN coins are ‘full-value assets that represent one’s share in the business’ and that ‘investors receive 80 percent of the company’s profits’.

The site also lists multiple cryptocurrency professionals as being involved, two of whom have denied that this is the case.

An additional claim of a filing with the United States Securities and Exchange Commission’s EDGAR database could not be verified because the phone number listed for the 2011 filing is disconnected, and no business filing is registered in Washington State where the company is supposedly located.

Incentives are offered to individuals promoting the ICO in the form of up to five thousand GLPN coins per social media or online forum post.

The ICO space is a hotbed for scams so it’s always a good idea to do thorough research before participating in any token sale.

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