North Dakota regulator is interested in a fraudulent ICO startup from Russia
The North Dakota State Securities Regulator issued an immediate cessation of illegal activities carried out by a Russian ICO project that inappropriately claimed links to Liechtenstein’s Union Bank AG and promoted “unregistered and potentially fraudulent securities.” Writes about this CoinDesk.
Commissioner Karen Tyler said Monday that a website for an ICO project called Union Bank Payment Coin (UBPC) “directly copied” elements of Union Bank’s website, including styling, graphics and text..
UBPC has stated that it is issuing “the world’s first security token backed by a licensed bank” and offers “a stablecoin fully backed by fiat currency – the Swiss franc.” The project tried to mislead investors by using an official announcement from a regulated and licensed bank about the blockchain, Tyler noted..
While the IP address of the Union Bank website belongs to Liechtenstein, UBPC is located in Russia and is registered to an individual, the publication says..
“Since ICOs are sold online and are actively distributed on social media, North Dakota residents can be involved in proposals, the organizers of which are on the same street with them or on the other side of the world,” Tyler said. – Criminals in the financial sector continue to profit from the hype and general excitement about blockchain, crypto assets and ICOs. Investors need to be extremely careful about such offers. “.
Previously, the North Dakota regulator has already taken measures regarding ICO projects. Last month, he issued orders for three startups at once: Crystal Token, Life Cross Coin and Advertiza Holdings.
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