Another Crypto Company Gets Cease And Desist Order From North Dakotan Authorities

cease and desist order; UBPC is found to be operating fraudulently

A crypto company posing as a Liechtenstein-based Union Bank AG initiative is in the spotlight in North Dakota for fraud. According to the North Dakota Securities Department, it issued a cease and desist order for Union Bank Payment Coin.

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Cease and desist order for fraud

In particular, the order targets the entity’s officers, directors, agents, and employees. The Securities department found Union Bank Payment Coin (UBPC) culpable for fraud. The entity promoted unregistered securities that were potentially fraudulent.

According to Karen Tyler, North Dakota Securities Commissioner, the action is a culmination of ongoing investigations. The investigations are under the guidance of the Department’s ICO Task Force. Tyler convened the Task Force to identify ICOs and cryptocurrency related investments that pose a risk to North Dakota investors.

The Securities Department elaborates that the investigations are part of a wider scheme. Dubbed Operation Cryptosweep, the scheme incorporates investigators from over 40 US sates. It also goes beyond the border into Canada.

Particularly, UBPC is culpable for misrepresentation of information. First, it claims connections to the Union Bank AG, based in Liechtenstein. The entity claims that it is the “world’s first security token backed by a fully licensed bank.”

Further, the entity claims to be a security token offering where investors can buy in. The buy-in says it is “designed to store wealth by utilizing income-producing digital assets.”

Also, the company wrongly tells its potential investors that it will soon issue a stablecoin pegged to the Swiss Franc. However, investigations point to falsified information beginning with the website address itself.

The real Union Bank AG issued a warning clarifying that it does not have any connections to the crypto company of the same name. Particularly, the bank warns its investors and other potential investors of a fraudulent website.

The warning reads: “Please be aware of potential scammers. The only way to participate in Union Bank AG’s coin offerings is via a direct contact with the bank. There are no websites for contributions or sign-ups, and no wallet addresses are available publicly or privately to send coins or fiat money.”

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