U.S. regulators shut down $18 Million Ultra Mining scam

U S regulators shut down Million Ultra Mining scam

Authorities in the United States had shut down Ultra Mining scam, but not before it duped investors to the tune of $18 million. A fraudulent scheme running under the garb of Ultra Mining has been ordered shut by the local authorities. Joint efforts of the ‘Texas State Securities Board’ (TSSB) and the ‘Alabama Securities Commission’ (ASC) led to the discovery of a crypto mining scheme promising to double investor amount using via cloud mining operation.

Ultra Mining scam guaranteed to double the investor amount in a short timeframe. Additionally, the scheme promoted a huge upcoming rise in Bitcoin price, attractive affiliate programs, and also contribute towards COVID-19 charity.

Ultra Mining Scam hid under layers of BTC mining services

The $18 million Ultra Mining scam asked participants to invest in hash power. The agencies think this is equivalent to selling unregistered securities. The firm did not register with the appropriate authorities before undertaking the sale of securities. The misleading claims pertaining to returns is also akin to scamming. Therefore, they are liable to be charged under fraudulent practice prevention regulations.

The near-impossible returns promised in Ultra Mining scam surely turned heads. The scamsters invited people to buy computing power worth $10,000 and enjoy an annual return of $10,500. The firm also proclaimed that Bitcoin price would soon rally to $23,000 since it is in a long-term bull cycle.

Crypto scams rising despite COVID-19 disruptions

Claiming itself to be a ‘bitcoin cloud mining company,’ Ultra Mining scam operated right under the nose of the authorities. The firm hid operations under the garb of advance Bitcoin mining rental services. It promised super-fast connection, uninterrupted access, real-time mining operation monitoring, a highly secure platform, and affordable mining services. The social media links on the website are also misleading.

Apparently, the Ultra Mining scam linked itself to the current COVID-19 pandemic and claimed it donated around $100,000 in philanthropic causes. However, when probing about the donations, the scamsters could not provide any verifiable proof regarding their donation. It remains to be seen what will be the impact of Ultra Mining scam on the actual BTC hashpower emanating from the states.

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

Related News

Hot Stories

Tips to Choose the Best Crypto Trading Bot
Watch: Inside the Walmart Metaverse 2022
Dubai’s Future Blockchain Summit to create global business opportunities for crypto, metaverse innovators
Fazzaco Expo Dubai 2022 - A Leading B2B & B2C Gathering for the Global Fintech Industry
Quant price analysis: QNT/USD is gearing to retest $112 support as bearish momentum increases

Follow Us

Industry News

Watch: Inside the Walmart Metaverse 2022
Why should Africa foster blockchain in an emergent economy?
Are bearish runs healthy for the crypto market?
All you need to know about Soulbound Tokens (SBT)
What's at the Heart of the 3air Platform?