Texas regulatory authorities have issued a cease and desist order to another scam crypto investment scheme just a few weeks after sending BitConnect packing.
Authorities are Busy in Texas
The self-proclaimed “most ambitious cryptocurrency project,” just like BitConnect and R2B Coin, has been ordered to stop its sales of unregistered securities with immediate effect. the authorities declared that the firm’s marketing statements were “materially misleading or otherwise likely to deceive the public.”
Citing their January 4, 2018, shut down order issued to BitConnect, the Texas Securities Board acknowledges DavorCoin’s response:
“On January 16, 2018, DavorCoin responded by announcing that ‘[t]his does not change anything for us’ and that DavorCoin is now the number one lending platform in the world! DavorCoin also responded by announcing DavorCoin is ‘now the new standard [and] many people are going to join us, the price will increase, and all you already in the game with us will benefit from it.”
DavorCoin and its founders have been accused of illegally selling unregistered securities in Texas. Another part of the order reads:
“The investments in the DavorCoin lending program have not been registered by qualification, notification, or coordination, and no permit has been granted for their sale in Texas. DavorCoin has not been registered with the Securities Commissioner as a dealer or agent at any time material hereto.”
Allegations leveled against the startup include intentional failure to disclose the identity of their membership, their principal place of business, and the disclosure of assets, liabilities, and other relevant business activities.
DavorCoin has been given until March 5, 2018, to respond to the order, after which, they will officially become illegal in the state. If not followed, founders and affiliates will face up to two years behind bars and fines of up to $5,000 for failure to comply.