North Dakota to Cease Russian ICO Scam

Union Bank Payment Coin copied elements of the Union Bank AG from Liechtenstein
21 November 2018   858

The North Dakota Department of Securities issued a decree to immediately terminate the illegal activities of the Russian ICO project, posing as Liechtenstein Union Bank AG to promote "unregistered and potentially fraudulent securities." This is reported by CoinDesk.

The statement by Commissioner Karen Tyler states that the Union Bank Payment Coin (UBPC) ICO project website “directly copied” elements of the Union Bank website, including style, graphic and textual design.

Declaring that it is releasing "the world's first security token secured by a licensed bank", and offering "stablecoin fully secured with a fiat currency, the Swiss franc", UBPC tried to mislead investors using an official statement issued by a regulated and licensed bank from Liechtenstein to issue own blockchain assets.

While the Union Bank website’s IP address is in Liechtenstein, UBPC is located in Russia and is registered to a private person, Tyler noted.

In October, the North Dakota Department of Securities issued a decree to terminate the activities of Crystal Token, Life Cross Coin and Advertiza Holdings, offering "unregistered and potentially fraudulent securities under the guise of ICO."

Bitfinex Shareholder to Start Pre-Orders for IEO

It should be noted there's no official whitepaper for the token and the fact of IEO wasn't confirmed by the operator of trading platform
06 May 2019   293

The Chinese platform RenRenBit, which is an intermediary between cryptocurrency lenders and borrowers, has begun to accept preliminary applications for participation in the public stage of IEO of the Bitcoin exchange Bitfinex. RenRenBit is part of the DGroup company, which is owned by a major Bitfinex shareholder, Zhao Dong, CoinDesk reports.

Note that the operator of the trading platform iFinex Inc. has not yet published the official white paper for its token, and has not even confirmed the fact of IEO itself. Dong is the main source of information on tokensale for $ 1 billion and it was he who distributed the marketing documentation of the LEO token through Weibo, although some top managers from Bitfinex have already mentioned the coin on Twitter.

Retail investors who have undergone a KYC procedure can already commit to invest up to $ 1,000 in USDT equivalent at the IEO's public stage. However, according to the mentioned marketing documentation, if the tokens are sold out to accredited investors by May 10, the tokensale will end in a closed format. As of May 4, the exchange allegedly received a verbal commitment of $ 600 million.

It is worth adding that the fake white paper of Bitfinex token has already appeared on the web, whose authors use the uncertainty around the alleged campaign and the lack of official statements to mislead gullible users. The official white paper has not been released.

CoinMarketCap, a popular analytical resource, meanwhile, excluded Bitfinex quotes from calculations of the average value of digital assets, since they significantly exceed those of other trading platforms.

Earlier, New York State Attorney General Letitia James asked the state Supreme Court to uphold the order for Bitfinex, which does not allow her to renew the credit line from Tether Limited. She warned the court about the high risks for users of the platform and USDT holders.

However, a week ago, Tether Limited's chief lawyer Stuart Hogner stressed that there are no risks for users, although steylcoin is secured only by 74%.

So, Bitfinex could already receive about $ 750 million from the USDT issuer's reserves to ensure liquidity after the fiat funds of the exchange's operator were blocked in the accounts of the Panamanian processing Crypto Capital Corp. in Poland, Portugal, the UK and the USA.