The Texas State Securities Board (TSSB) has issued an emergency cease and desist order against a fraudulent crypto firm that made false claims about COVID-19 donations. According to an official TSSB notice, this action was brought in collaboration with the Alabama Securities Commission to cease the ongoing illegal offering.

The TSSB on April 8 issued the order against a crypto mining firm, Ultra Mining, alleging that it is involved in various illegal activities. The Texas securities regulator alleges that Ultra Mining is involved in purportedly fraudulent claims to double investors’ funds. The Texas regulator also noted other accusations involving violation of Texas securities laws.

The order stated that Ultra Mining is promising investors of huge returns on their investments. It claims the firm purportedly tells its potential investors that a $10,000 investment in its mining company would give them about $10,500 return each year.

The emergency order specifically points out the firm’s fraudulent claims about its COVID-19 charity efforts. According to the order, the firm and its agent company, Laura Branch are flaunting the effectiveness of the charitable donations.

The TSSB noted that Ultra Mining is telling investors that it had already donated $100,000 to the UNICEF for purchasing of medical equipment to fight the COVID-19, and also claims it will continue to donate to the COVID-19 relief.

However, the Texas regulator alleges that there is no evidence that the donation has actually taken place. It added that, the firm is expressly refusing to provide any evidence that potential investors can use to verify the donation.

The Texas order further noted that Ultra Mining is also making claims that it has raised $18 million from Texas residents for investments in computing power to mine crypto. With this, the authority is giving the firm up to 31 days to provide evidence.