Home News U.S. authorities are closing a Russia-based ICO scam

U.S. authorities are closing a Russia-based ICO scam

North Dakota State authorities disclosed a scam ICO which was disguising itself as a website of Lichtenstein-based Union Bank AG to promote “unregistered and potentially fraudulent securities.” According to regulators, the scammers are headquartered in Russia.

The related cease-and-desist order was already issued by North Dakota’s securities watchdog.

As reported by Karen Tyler, commissioner of the North Dakota Securities Department, the ICO project called Union Bank Payment Coin (UBPC) had “directly copied” elements from the Union Bank’s website, including style, wording, leadership information, and images.

UPBC was pretending to be the “world’s first security token backed by a fully licensed bank”, while offering a “stable coin that is fully backed by a fiat currency – the Swiss franc”.

Whereas the IP address for Union Bank’s website is located in Liechtenstein, UPBC is headquartered in Russia and registered to an individual.

“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,” – the U.S. officials noted.

According to Diar, ICO scammers have stolen almost $100 million from investors in August 2018 alone.