North Dakota’s securities watchdog has issued a cease-and-desist order against a Russia-based initial coin offering (ICO) that appeared to impersonate Liechtenstein-based Union Bank AG to promote “unregistered and potentially fraudulent securities.”
On Monday, Karen Tyler, commissioner of the North Dakota Securities Department, said that the website of the supposed ICO project – called Union Bank Payment Coin (UBPC) – had “directly copied” elements from the Union Bank website, including style, wording, leadership information and images.
Claiming to be the “world’s first security token backed by a fully licensed bank” and offering a “stable coin that is fully backed by a fiat currency – the Swiss franc,” UBPC looked to be an attempt to defraud investors by basing its claims on a legitimate blockchain announcement made in August by the regulated and licensed bank, Tyler said.