Alabama Securities Commission warns businesses of investment fraud scheme


MONTGOMERY, Ala. (WDHN) — The Alabama Securities Commission is warning citizens to stop doing business with a cryptocurrency cloud mining company that is now banned in the state.

The company ULTRA BTC MINING LLC, also branded as Ultra Mining (Ultra) and Laura Branch, an Ultra representative, is said to have fraudulent transactions that are not registered under Alabama law.

Investors are asked to buy “mining plans” that would lease computing power from cryptocurrency mining devices with a promised return rate of 105 percent per year. However, there is no guarantee that these plans would work at all.

“Moreover, cryptocurrency mining operations require the latest innovations in technology to yield even a remote possibility of success,” the message from the ASC states. “In other words, Ultra could not legitimately guarantee that they would achieve a reward to pay investors. Ultra’s website also makes the unsubstantiated claim that Ultra donated $100,000 to UNICEF to fight the Corona Virus (COVID-19).”

Texas also issued a cease-and-desist order against the company for the aforementioned problems.

To protect yourself from investment fraud, the ASC provided the following guidelines:

  • Check to make sure investors are properly registered by calling the Alabama Securities Commission by calling 1-800-222-1253.
  • Don’t believe guarateed returns. Investments always carry risks
  • Don’t fall for unreasonably high rates of return.
  • Remember con artists watch the news and often create scams from current headlines, like about COVID-19. Use caution when a company or person spins a crisis to elicit an emotional response like fear, scarcity, or for their charitable outreach to alleviate a crisis.

You can learn more by following the foliwing links:

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories