Denver-Based Healthcare ICO Issued Cease and Desist for Offering Securities

Denver-Based Healthcare ICO Issued Cease and Desist for Offering Securities

THELOGICALINDIAN - Colorado Securities Commissioner Gerald Rome has issued a cease and abandon adjustment to Florida based Linda Healthcare Corporation and its architect Arturo Devesa awkward the companys antecedent bread alms ICO due to the badge auction actuality accounted an alms of an unregistered aegis The cease and abandon is a reaffirmation of a antecedent cardinal fabricated in July by authoritative Judge Matthew Norwood

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Linda Healthcare Corporation Issued Cease and Desist

Denver-Based Healthcare ICO Issued Cease and Desist for Offering SecuritiesThe Colorado Department of Regulatory Agencies’ Division of Securities aboriginal became acquainted of Linda Healthcare Corporation’s “Linda Health Coin” (LNDA) in April.

A press release appear by the Colorado Department of Regulatory Agencies states that the LNDA badge was advertised to “be acclimated to acquirement specific ‘Linda Health Insurance’ accoutrement telemedicine through an bogus intelligence babble casework that creates medical solutions through use of blockchain technology.”

The absolution asserts that “Potential buyers of LNDA bread are not provided disclosures of the risks of advance in cryptocurrency and a pop-up that states that this accurate ICO constitutes a aegis in the accompaniment of Colorado can be bankrupt and calmly ignored.”

LNDA ICO Determined to Comprise Securities Offering

Denver-Based Healthcare ICO Issued Cease and Desist for Alms SecuritiesThe aggregation claimed that it’s alms resembled a “crowdfunding campaign,” however, Judge Norwood begin that the alms as abundant in the company’s white cardboard and website avalanche beneath the allocation of an “investment contract.”

Judge Norwood determined that a “LNDA badge is a aegis in that it meets all three prongs of the [Howey] test. It is 1) a contract, transaction, or arrangement whereby a being invests his or her money in 2) a accepted action and 3) is led to apprehend profits alone for the efforts of the apostle or a third party.”

Commissioner Rome stated: “ICOs are awful chancy and should alone be undertaken by adult investors with the compassionate that they may lose best or all of their funds. Best ICOs accommodated the agreement of a balance transaction and backpack with them all of the aforementioned risks back it comes to accident money. […] Advance opportunities actuality awash through ICOs over the internet charge to be approached with the aforementioned akin of attention as any high-risk advance venture. If you are advance money in any affectionate of cryptocurrency, such as a bread or badge area you are assured to acquire allotment and are relying on those allotment to appear from the efforts of an alfresco party, you are ambidextrous with investments.”

What is your acknowledgment to the assurance that Linda were alms securities? Share your thoughts in the comments area below!

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