Colorado And North Dakota Announce ICO Enforcement Actions

As we have previously blogged, state and provincial securities regulators across the U.S. and Canada have been actively policing the marketplace for ICOs and security token offerings, supplementing efforts at the federal level in the United States undertaken by the SEC. Texas and Massachusetts have been particularly active on this front, and New York recently issued a blistering report on the status of crypto exchanges. Colorado and North Dakota are among the latest states to announce enforcement actions against crypto businesses.

Recently, Colorado has initiated several administrative actions known as show cause orders, and has issued two cease and desist orders regarding potentially fraudulent securities offerings in Colorado in the form of ICOs. North Dakota has issued an advisory alert, and commenced enforcement action against ICO issuers both in October and September. Some of the companies North Dakota targeted were also subject to securities enforcement action