The Texas State Securities Board (TSSB) has accused cloud mining firm Ultra BTC Mining of issuing unregistered securities. The TSSB and the Alabama Securities Commission have jointly filed a cease and desist order against Ultra Mining. These security regulators have alleged that Ultra Mining has violated registration rules, committed fraud, failed to disclose key operational information, and misled investors.
Ultra Mining has to challenge the order within 31 days if it wishes to.
Fake Charity Claims
As per the allegations, Ultra Mining claimed to donate $100,00 to the UNICEF for buying medical equipment amid the COVID-19 crisis. The TSSB argued that the cloud mining firm has refused to verify the claim. Moreover, according to the regulators. Ultra Mining along with its agent Laura Branch had been luring ‘economically vulnerable Texans’ under a “recession special” campaign.
More about the Allegation
The TSSB noted, “The company is promising eye-opening returns. According to the order, they are telling potential investors that a $10,000 investment in computing power will return nearly $10,500 per year. A $50,000 investment will return nearly $52,000 per year.”
According to the reports, Ultra Mining had been renting has power at $40 per 0.1 Terahashes per second (TH/s). They even claimed that investors stand a chance to reap as much as 105% annual benefits.
The TSSB further reported that Ultra Mining has not registered its offering in regard to the $18 million that it claims to have raised from Texas residents.
Furthermore, Ultra Mining has collaborated with content creators on YouTube. It is incentivizing them with free hash power along with up to 20% commission from deposits made by referred investors.