Cryptomustar
Saturday, July 2, 2022
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
Cryptomustar
No Result
View All Result
Home Regulation

Texas Regulators Clamp Down on Bitcoin ‘Ultra Mining’ Firm

by admin
September 4, 2020
in Regulation
0
Texas Regulators Clamp Down on Bitcoin ‘Ultra Mining’ Firm
0
SHARES
7
VIEWS
Share on FacebookShare on Twitter



RELATED POSTS

Stablecoins put on notice as EU lawmakers agree on landmark MiCA framework

Biden administration official hints at stablecoin legislation that could come into force this year

The Texas State Securities Board has issued a cease and desist order against what it alleges is a fraudulent bitcoin mining company. The state regulator asserts that Ultra BTC Mining has been selling illegal investment schemes as well as claiming charitable donations that cannot be verified.


BITCOIN MINING COMPANY OFFERED UNREALISTIC RETURNS

According to the order, Ultra Mining has already raised USD $18 million by promising huge profits to naive investors. The state regulator states:

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.

Additionally, the Securities Board asserts that the company and its agent, Laura Branch, are claiming to have donated $100,000 to UNICEF for COVID-19 relief, yet refuse to provide verification of the donation.

A key element to this investigation is the board’s assertion that Ultra Mining will not give details into the “material facts about its operation.” The company has apparently refused to disclose where the mining takes place, what relationships it has to mining pools, or what hardware it uses. In other words, the regulator believes the entire operation could be nothing more than a ponzi-style scam.

The Alabama State Securities Commission has joined Texas in bringing action against the company.

REGULATOR ASSERTS SECURITIES FRAUD

Noteworthy in the order is the statement that Ultra Mining is engaging in operations that violate relevant securities laws. Specifically, it states that the hash power being sold qualifies as a security due to it being an investment with potential return.

The issue over whether or not cryptocurrencies qualify as securities is complex, and has yet to be fully defined by financial regulators. The charge against Ultra Mining sidesteps this concern by addressing the hash power used in mining, yet this too raises questions.

Bitcoin mining is growing rapidly in Texas, owing to the Lone Star State’s cheap power and deregulated electricity market. By treating hash power as a security, the state’s financial regulators are opening the door to a range of new legal complexities that could interfere with these operations.

With state lawmakers eager to lure more mining operators, it can be assumed that the government will be quick to better define how both cryptocurrency and hash power investment should be legally defined. Nevertheless, doing so will not be easy, as cryptocurrencies represent a new asset class that do not easily fit into existing securities categories.

Do you think the Texas regulator’s latest cease and desist order is justified? Add your thoughts below!


Images via Shutterstock



Source link

Tags: BitcoinClampFirmMiningRegulatorsTexasUltra
ShareTweetShare

Related Posts

Stablecoins put on notice as EU lawmakers agree on landmark MiCA framework

Stablecoins put on notice as EU lawmakers agree on landmark MiCA framework

by admin
July 1, 2022
0

European Union (EU) lawmakers reached a political agreement on June 30 for crypto-asset regulation.The final trialogue covered supervisory architecture,...

Biden administration official hints at stablecoin legislation that could come into force this year

Biden administration official hints at stablecoin legislation that could come into force this year

by admin
July 1, 2022
0

Coindesk reported that an official of the U.S federal government hinted that the government is working with Congress on...

Banks’ exposure to risky cryptocurrencies should be limited to 1%, Basel Committee proposes

Banks’ exposure to risky cryptocurrencies should be limited to 1%, Basel Committee proposes

by admin
July 1, 2022
0

The consultation paper proposes dividing crypto assets into Groups 1 and 2. Group 1 consists of tokenized traditional assets...

Coinbase reportedly has contract with ICE to provide users’ geo-location data

Coinbase reportedly has contract with ICE to provide users’ geo-location data

by admin
June 30, 2022
0

Cryptocurrency exchange Coinbase’s analytics program, Coinbase Tracer, is reportedly providing users’ data to the United States Immigration and Customs Enforcement...

Three Arrows Capital gets a slap on the wrist from Singapore financial watchdog

Three Arrows Capital gets a slap on the wrist from Singapore financial watchdog

by admin
June 30, 2022
0

Singapore’s financial regulator has reprimanded three Arrows Capital (3AC) for providing false information about its operations in the country.The...

POPULAR NEWS

4 Cryptocurrency that Blow Bitcoin Out of the Water

4 Cryptocurrency that Blow Bitcoin Out of the Water

September 25, 2020
Memoriae – Next Generation of Decentralized Cloud Storage Based on Blockchain

Memoriae – Next Generation of Decentralized Cloud Storage Based on Blockchain

July 1, 2021
Apollo CBDC: The CBDC Platform that can Power Economies

Apollo CBDC: The CBDC Platform that can Power Economies

October 6, 2020
Stratus: The Most Feature Rich Social Media Network

Stratus: The Most Feature Rich Social Media Network

September 9, 2020
Binance Coin (BNB) erupts above $270 as the whole Smart Chain ecosystem soars

Binance Coin (BNB) erupts above $270 as the whole Smart Chain ecosystem soars

February 19, 2021

EDITOR'S PICK

Institutional investors bought more Ethereum than Bitcoin last month

Institutional investors bought more Ethereum than Bitcoin last month

May 21, 2021
Bitcoin pierde impulso y su soporte se ubica en $35K-37K

Bitcoin pierde impulso y su soporte se ubica en $35K-37K

April 29, 2022
Intimity’s Airdrop to go Live Soon, Opening Doors for Users to Hold the $INT Token

Intimity’s Airdrop to go Live Soon, Opening Doors for Users to Hold the $INT Token

January 12, 2022
Shiba Inu supply shrinking as 2.41 billion SHIB got burned

Shiba Inu supply shrinking as 2.41 billion SHIB got burned

April 14, 2022

About

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency. Simple logic and real-world examples are preferred before technical jargon and personal rants.

Follow us

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Press Release
  • Regulation
  • Uncategorized

Recent Posts

  • Crypto World Is Cautious of Finer Details In EU’s MiCA Law
  • El Salvador compra 80 bitcoins adicionales a $19K cada uno, según el presidente Bukele
  • BlockFi’s Fire Sale Shows the Uber Startup Model Is Disastrous for Finance
  • Crypto Mining Stocks Have Huge Upside, Says DA Davidson as It Slashes Hashrate Forecasts
  • About Us
  • Privacy Policy
  • Contact Us

© 2020 cryptomustar.com

No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO

© 2020 cryptomustar.com

  • YAM v2YAM v2(YAMV2)$4.70-1.41%
  • yfBetayfBeta(YFBETA)$4.27-0.10%
  • IDLEIDLE(IDLE)$1.44-12.39%
  • WPP TokenWPP Token(WPP)$0.006826-3.49%
  • DSLA ProtocolDSLA Protocol(DSLA)$0.003681-6.85%
  • lympoLympo(LYM)$0.004392-4.43%
  • Werewolf CoinWerewolf Coin(WWC)$0.098082-2.58%
  • PolkaBridgePolkaBridge(PBR)$0.439784-6.92%
  • Dev ProtocolDev Protocol(DEV)$1.76-16.14%
  • EvidenZEvidenZ(BCDT)$0.122949-3.85%