THELOGICALINDIAN - The Texas Accompaniment Securities Board has issued a cease and abandon adjustment adjoin what it alleges is a counterfeit bitcoin mining aggregation The accompaniment regulator asserts that Ultra BTC Mining has been affairs actionable advance schemes as able-bodied as claiming accommodating donations that cannot be verified
BITCOIN MINING COMPANY OFFERED UNREALISTIC RETURNS
According to the order, Ultra Mining has already aloft USD $18 actor by able huge profits to aboveboard investors. The accompaniment regulator states:
Additionally, the Securities Board asserts that the aggregation and its agent, Laura Branch, are claiming to accept donated $100,000 to UNICEF for COVID-19 relief, yet debris to accommodate analysis of the donation.
A key aspect to this analysis is the board’s affirmation that Ultra Mining will not accord capacity into the “material facts about its operation.” The aggregation has allegedly banned to acknowledge area the mining takes place, what relationships it has to mining pools, or what accouterments it uses. In added words, the regulator believes the absolute operation could be annihilation added than a ponzi-style scam.
The Alabama State Securities Commission has abutting Texas in bringing activity adjoin the company.
REGULATOR ASSERTS SECURITIES FRAUD
Noteworthy in the adjustment is the account that Ultra Mining is agreeable in operations that breach accordant balance laws. Specifically, it states that the assortment ability actuality awash qualifies as a aegis due to it actuality an advance with abeyant return.
The affair over whether or not cryptocurrencies authorize as balance is complex, and has yet to be absolutely authentic by banking regulators. The allegation adjoin Ultra Mining sidesteps this affair by acclamation the assortment ability acclimated in mining, yet this too raises questions.
Bitcoin mining is growing rapidly in Texas, attributable to the Lone Star State’s bargain ability and deregulated electricity market. By alleviative assortment ability as a security, the state’s banking regulators are aperture the aperture to a ambit of new acknowledged complexities that could baffle with these operations.
With accompaniment assembly acquisitive to allurement added mining operators, it can be affected that the government will be quick to bigger ascertain how both cryptocurrency and assortment ability advance should be accurately defined. Nevertheless, accomplishing so will not be easy, as cryptocurrencies represent a new asset chic that do not calmly fit into absolute balance categories.
Do you anticipate the Texas regulator’s latest cease and abandon adjustment is justified? Add your thoughts below!
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