The emergency orderliness found that DavorCoin is telling investors they can earn lucrative profits by investing in a lend platform based on a newly cryptocurrency known as davorcoin. Investors allegedly purchase davorcoin and then lend it to DavorCoin .
According to the holy order, DavorCoin says an investor lending $ 30,000 in davorcoin may earn $ 15,390 in the first month of the program and receive $ 107,217 after 120 days .
DavorCoin, however, is not providing any details about how it will generate such profits. DavorCoin besides is not disclosing the identity of its principals or its set of occupation, claiming rather that “ due to tax and regulation risks, ” it “ can not officialize its diggings. ”
DavorCoin appeared to step up market of its lend program after the closure of another cryptocurrency lend platform, BitConnect .
Commissioner Iles on Jan. 4 entered an Emergency Cease and Desist Order to stop BitConnect ’ sulfur illegal and deceitful offers of a different lend outline .
According to the State Securities Board ‘s Enforcement Division, DavorCoin responded to BitConnect ’ mho settlement by announcing “ [ metric ton ] his does not change anything for us, ” and that DavorCoin is now “ the act one lending platform in the universe ! ! ”
Commissioner Iles warned manque investors not to buy into the hype surrounding cryptocurrencies without determining precisely what they are investing in .
“ Promoters of deceitful securitized cryptocurrencies are using engineering in a way that conceals their identity and their actions, ” he said. “ ultimately, investors are investing in nothing more than a promise made through a web site maintained by an anonymous group. ”
The Enforcement Division besides found that DavorCoin is an unregistered firm and it is selling unregistered securities through affiliates, which violate the Texas Securities Act.
The DavorCoin order is the fourth emergency action against unregistered, overseas companies selling investments tied to cryptocurrencies. The others are :
— R2B Coin, a Hong Kong-based caller selling investments in its own currency, r2b mint, and telling investors the coin “ will never go down in value ” ;
— BitConnect, a United Kingdom-based company that at the time of the order claimed a marketplace value of $ 4.1 billion for its BitConnect Coin currency ;
— USI-Tech, a Dubai-based company, which promised triple-digit returns from investments tied to the mining of Bitcoin .
The four companies named in orders have solicited Texas investors through websites, social media, and on-line advertisements.
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DavorCoin is telling investors that davorcoin “ aims to become the best option to current popular coins such as Bitcoin and Ethereum. ”
The company is recruiting individuals who are not registered as securities dealers or agents to act as its affiliates and crack investments in the DAVORCOIN Lending Program in Texas .
DavorCoin has 31 days to challenge the order before the State Office of Administrative Hearings .
