Davorcoin Receive Cease and Desist – The New Bitconnect

DavorCoin is the new Bitconnect. Do not invest in DavorCoin it is a scam and you will lose money. DavorCoin, a cryptocurrency which aimed to be the next Bitcoin or Ethereum, has been raising red flags due to their lending program. The Texas State Securities Board has sent a cease and desist to the start up and demanded they stop operations in Texas.

Much like the infamous Bitconnect who had to close down their lending platform earlier in the year, DavorCoin promised investors they were guaranteed to earn large amounts of profits. Monthly returns of up to 48% were advertised, all while giving vague details of the process and that stating identities of its principals and headquarters could not released. The platform did not implement a KYC process either, which is usually the standard for organizations who are operating LEGALLY in the US.

When contacted by the State Securities Board’s Enforcement Division, DavorCoin responded to BitConnect’s closure by announcing “This does not change anything for us, we are now the number one lending platform in the world!”

The state of Texas was the first to order Bitconnect a cease and desist as well so it’s not surprising they are cracking down on fraudulent crypto ponzi schemes.

DavorCoin will no longer be able to operate in Texas and most likely in other states will follow suit. They will have 31 days to challenge the order before the State Office of Administrative hearings. At this point it is a safe bet to GTFO out DavorCoin.

Update: Feb 7th 2018: Davor has decided to shut down the lending feature on their platform.