USI-Tech suspend withdrawals, $18 mill ETH mining pool cleaned out

As a result of a lack of communication from USI-Tech management, the rumor mill went into overdrive over the weekend.

Were USI-Tech going to honor 140% ROI BTC package payouts? Were secret negotiations going on between the SEC and USI-Tech?

And bearing in mind an SEC investigation has yet to even be confirmed, there was also one about the SEC dropping its case due to a lack of evidence.

All par for the course when a Ponzi collapses and nothing those who follow the MLM underbelly haven’t seen before.

In the aftermath of the weekend what we can report on are three significant developments:

  1. USI-Tech has formally suspended affiliate withdrawals
  2. $17 million in ethereum was withdrawn from a mining pool bearing the name “USITech” and
  3. USI-Tech’s TechCoin whitepaper reveals it’s just another “me too” altcoin

Let’s take a deeper look into each of them.

Despite being readily available at the drop of a hat to appear in video announcements prior to the Texas cease and desist, of late USI-Tech management haven’t shown their faces.

Instead affiliate communication is occurring through carefully scripted backoffice announcements.

Earlier today USI-Tech sent affiliates a new backoffice communication, announcing the formal suspension of ROI and commission withdrawals.

Citing “disputes with regulatory authorities”, USI-Tech advised;

Until these investigations are completed, we are barred from making any payments to prevent additional abuses.

The “investigations” referred to purportedly relate to “double accounts and false accounts used for unlawful payouts”.

It seems that up until the Texas Securities Board sent them a cease and desist, USI-Tech had no problem with turning a blind eye to fraud going on inside the company.

Tellingly, no time-frame is given for completion of USI-Tech’s investigations.

This raises the prospect of ROI and commission withdrawals for US and Canadian USI-Tech affiliates being suspended indefinitely.

Amusingly, USI-Tech are threatening to “prosecute” affiliates who it finds have received “unlawful payouts”.

Putting aside the fact that every payout in a Ponzi scheme is unlawful, presumably the affiliates USI-Tech are threatening are based in the US.

First of all USI-Tech is not an enforcement authority, so how are they going to “prosecute” anyone.

At best they can file a civil suit claiming damages. But with USI-Tech management on the run from US authorities, where are USI-Tech going to file these lawsuits?

Once again those familiar with the MLM underbelly will recognize USI-Tech’s legal threats for what they are – hot air.

The prospect of USI-Tech management keeping funds invested by US and Canadian investors brings us to our next point of analysis, the clearing out of $18.3 million from an ethereum mining pool.

The mining pool in question is named USITech and surfaced last month. Whether the mining pool even belongs to USI-Tech is unclear. It is however widely believed that the company purchased an existing Chinese ethereum mining pool and renamed it.

Regardless, USI-Tech affiliates were quick to cite the pool as evidence USI-Tech was generating external ROI revenue, despite the fact nothing had been transferred out of the pool for seven months.

That changed approximately eleven hours ago, following the transfer of 15,651.75234 ETH out of the account:

At the current exchange rate, 15,651.75234 ETH is worth $18,327,344 USD.

The owner of the USITech mining pool account transferred the funds to “0x24BcC9d34d3b5F5ad2d8Aa944dB4aa7FFeB8b20F”;

From which it was then transferred to “0x876EabF441B2EE5B5b0554Fd502a8E0600950cFa”.

In this Reddit thread from about a month ago, “0x876EabF441B2EE5B5b0554Fd502a8E0600950cFa” is identified as a “hotwallet” account belonging to the Bitfinex exchange.

What happened to the $18.3 million after it entered the Bitfinex exchange is unclear. Such is the nature of cryptocurrency.

What I can tell you though is, in light of the announcement earlier today, the money isn’t going to be put toward paying affiliates what USI-Tech has represented they’ve earned.

Finally USI-Tech also released their upcoming TechCoin whitepaper.

From the looks of it, TechCoin is being put together by some Indian dev firm on the cheap.

Having gone through the whitepaper, TechCoin doesn’t seem to offer anything new. It appears to be yet another altcoin launched for the sake of launching one.

TechCoin might have gained traction being hitched to USI-Tech’s Ponzi operations, however in light of recent developments that now seems pretty unlikely.

TechCoin will remain a side-issue for most USI-Tech affiliates, who are now probably more interested in recovering funds invested into than the launch of the altcoin itself.

Despite instances to the contrary, thus far USI-Tech has failed on every level to demonstrate that it is operating as a legitimate company.

After receiving a cease and desist from Texas, a legitimate company would have promptly registered itself and disclosed the required information (in particular, evidence of external ROI revenue).

Instead, after receiving the Texas cease and desist, USI-Tech management has

  1. gone into hiding
  2. suspended US business operations
  3. started to liquidate a suspected source of capital holding over $18 million dollars
  4. prohibited US and Canadian withdrawals and
  5. threatened to sue its affiliates

Stay tuned…

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