A Fake ICOs has been Sabotaged by North Dakota’s Financial Regulators
Based on a recent report, a cease-and-desist order has been issued by the North Dakota financial regulator. The order was issued against a Russia-based initial coin offering (ICO) Union Bank Payment Coin (UBPC), which was impersonating a Liechtenstein-based Union Bank AG.
The North Dakota Securities Department
According to the report, the scam company was promoting an unregistered and potentially fraudulent securities.
The report which came in on Monday made it known that the commissioner of the North Dakota Securities Department, Karen Tyler, gave the order. Tyler gave the order due to the fact that the said fake company—Union Bank Payment Coin (UBPC), directly copied every last bit of content present on the original bank’s website. This includes the website’s arrangements as well as the leadership information and image.
The fake website contents also included some false information such as the claim of being the “world’s first security token backed by a fully licensed bank” and offering a “stable coin that is fully backed by a fiat currency – the Swiss franc,”
According to the watchdog, the UBPC is set up in a manner which is etched toward defrauding its investors by claiming to be a legitimate extension of the regulated and licensed bank.
When the IP address of the fake Union Banks website was traced, it was discovered that the website is hosted in Russian. This is in contrast to the website’s information which states that the company is based in Liechtenstein. The information retrieved from the IP address also made it known that the website is registered to an individual rather than a cooperation like it is claiming.
Tyler confirmed this in a recent statement, where he stated that:
“Because ICOs are sold over the internet and pitched heavily through social media platforms, North Dakotans can be exposed to the offers whether the promoter is down the street or on the other side of the globe, ”
He further stated that:
“Financial criminals continue to cash in on the hype and excitement around blockchain, crypto assets, and ICOs – investors should be exceedingly cautious when considering a related investment.”
