Division of Securities issues final cease and desist orders to two companies promoting ICOs in Colorado

DENVER - (Oct. 12, 2018) - Colorado Securities Commissioner Gerald Rome signed two final cease and desist orders directing two companies offering Initial Coin Offerings (ICOs) to cease and desist from offering or selling unregistered securities in Colorado. Davor (offering DavorCoin) and Cyber Capital Invest (offering CCI Tokens) received the orders as a result of an investigation into potentially fraudulent securities offerings in Colorado in the form of ICOs.

The investigation was conducted by members of the Division of Securities, part of the Department of Regulatory Agencies (DORA), who are part of an “ICO Task Force” convened by the Commissioner in May with the purpose of identifying companies that might pose a risk to Colorado investors.

DavorCoin was offered through a website accessible to Colorado residents that described DavorCoin as a new cryptocurrency aiming to become an alternative to coins such as Bitcoin and Ethereum.

Through the website, investors were promised returns as high as 10 percent per month for participating in a “staking pool” and were told that DavorCoins are pegged to the price of gold and can be traded on exchanges.

Cyber Capital Invest offered CCI Tokens through a website accessible to Colorado residents. Cyber Capital Invest described the CCI Tokens as a “profit share token” allowing investors to receive a guaranteed daily return of between 0.75 percent and 2 percent, depending on the “access level” selected by the investor. In addition to direct sales, Cyber Capital Invest offered commissions to individuals who promote the sale of the token through a “bounty program.”

The securities offered by Davor and Cyber Capital Invest were not registered in Colorado or exempt from registration and were offered to Colorado residents without full and fair disclosure of material risks associated with the investment.  

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