On April 8, 2020, the state of Texas and the state of Alabama wrote emergency cease-and-desist orders for Ultra BTC Mining (UBM). It is alleged that UBM:
- is not registered to offer securities in the state
- is a Ponzi scheme.
It is believed that UBM has raised over $20 million. To attract potential investors, UBM:
- claims that investors can earn a 105% annual return
- claims that the price for Bitcoin (BTC) will be $23,000 by 2021
- offers affiliates a 5% commission from the deposit of a referral
- offers “Ultra mining partners”, that are required to advertise UBM on YouTube, a 20% commission from the deposit of a referral.
In its promotional materials, Ultra BTC Mining does not give information about its operation. It does not tell:
- where the mining operation is located
- the size of the mining operation
- what hardware it uses.