Us regulators accused startup Ultra Mining of defrauding investors of $18 million
April 9, 2020
The Texas securities Board (TSB) and the Alabama securities Commission (ASC) accused Ultra Mining of organizing fraudulent BTC mining and illegally raising $18 million.
The claims of the agencies are that Ultra Mining and its agent Laura Branch misled investors by promising them more than 100% per annum of the invested funds. According to A tssb press release, if a potential customer invests $10,000 in computing resources, their net annual profit for the year will be $10,500. By investing $50,000, the investor will earn $52,000 for the year.
Ultra Mining employees claimed that bitcoin is at the beginning of a bull market and predicted a significant increase in the bitcoin exchange rate, up to $23,000.
In addition, the firm made false claims about donating about $100,000 to the United Nations Children's Fund to fight coronavirus. However, Ultra Mining refused to provide information regarding the financial capabilities of the company and confirming the donation. Regulators suggest that Ultra Mining fraudulently attracted cryptocurrencies worth $18 million.
Suspicion was also aroused by the fact that links to social networks presented on the company's website did not lead to specific pages of the company or its managers, but to the main pages of social networks. TSSB believes that mining investments are considered investments in securities that have not been registered under the US securities Act.
Recall that last month the us securities and exchange Commission (SEC) accused the cryptocurrency project Meta 1 Coin of conducting a fraudulent ICO, and this month the regulator filed a lawsuit against a married couple from Texas for defrauding investors of $500,000.