The Colorado Department of Regulatory Agencies (DORA) announced its investigation of Linda Healthcare and Broad Investments LLC for promoting illegal ICOs to Colorado state residents; The Denver Post reported May 4.
Linda Healthcare Corp located in Colorado and Broad Investments LLC based in Washington could be going against the Colorado securities laws by supporting ICOs, according to The Colorado Securities Commissioner.
DORA realized that Linda Healthcare is backing a “LindaHealthCoin” token on its website which can be used to buy Linda Healthcare insurance. The token can purchase telemedical coverage by the use of Artificial intelligence service chat that develops medical solutions while utilizing Blockchain technology.
DORA confirmed that the Linda Healthcare does not provide any warnings that ICOs create security in Colorado. “The Linda Healthcare is currently not in operation “reported some officials. A Tweet posted on March 19 by the firm directs customers to check their white paper.
The Broad investments firm is supposedly supporting the digital currency by the use of tokens that is explained in their website as “equity that signifies shares of the company just like stocks,” reported Denver post. The token seemingly offer the holders to have a share of the returns from Broad investments’ strategy, which create stock portfolios using an algorithm.
According to the reports of DORA representatives, the two companies did not offer any information on the risks trading in crypto or ICOs on their websites. Gerald Rome, Colorado Securities Commissioner, noted that investments in ICO tokens should be performed appropriately.
The firms must demonstrate why they should not be sanctioned as par the Colorado Securities Act where the firms are under cease orders.