Modulus CEO: Crackdown on Fraud to Enhance Long-Term Success of Cryptocurrency

Scottsdale, AZ – November 27, 2018According to an NDSD press release, “North Dakota Securities Commissioner Karen Tyler has issued a Cease and Desist Order against Union Bank Payment Coin, a/k/a UBPC, and its officers, directors, agents, and employees, for promoting unregistered and potentially fraudulent securities in North Dakota in the form of an Initial Coin Offering (ICO).”

“What happened here appears to be an extreme case of fraud — the Union Bank Payment Coin pitched a security token offering of a stablecoin, utilizing the brand of a legitimate entity. In reality, the cryptocurrency was not related to the licensed and regulated bank it attempted to emulate in its branding,” noted Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading technology that powers global equities, derivatives, and cryptocurrency exchanges.

“Existing US securities law gives federal and state authorities significant latitude to deal with fraud. But, investors, too, need to operate with due diligence. Read white papers. Check out executive teams. Is the business address real? Does the phone number work? Are they promising high returns at little to no risk? All of these things offer clues when attempting to determine the legitimacy of an operation. It really isn’t any different than performing due diligence for a non-crypto investment,” explained Gardner.

Beyond fraudulent offerings, investors need to be “cautious of hackers that ‘spoof’ legitimate ICOs to intercept and steal investor money,” according to the North Dakota Securities Department.

“Here at Modulus, we’ve long been advocates of smart, fair, consistent government regulation. At the end of the day, standardization of our industry is a good thing that will make it more competitive, transparent, and successful. That’s why we launched our own, proprietary Surveillance & Risk Management Solution, which utilizes machine learning to identify and, ultimately, enable cryptocurrency exchange administrators to bring an end to market manipulation, abusive trading behavior, and money laundering,” said Gardner.

Earlier this year, Modulus launched the world’s fastest exchange solution which offers an unmatched 40-nanosecond latency, making it one hundred times faster than NASDAQ.

About Modulus: 

Since 1997, Modulus has provided advanced financial technology products and services to professional traders, brokerages, trading firms, and educational, governmental, and non-profit institutions throughout 94 countries. The company’s products and services reach millions of users around the world.

To schedule an interview with CEO Richard Gardner, contact Modulus Chief Communications Officer, Charles Catania at c.catania@modulusglobal.com.

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