When the Texas Securities Board issued USI-Tech with a cease and desist last year, one of the primary concerns was lack of disclosure.
At the time USI-Tech were claiming to generate ROI revenue through bitcoin mining.
In their cease and desist, the Securities Board pointed out a complete lack of evidence of bitcoin mining taking place or being used to fund ROI revenue.
Rather than provide this evidence, USI-Tech ceased business operations in the US.
Unfortunately however there was no getting around the US being USI-Tech’s primary source of invested funds.
Despite having access to what was left of US investment, when combined with investment from elsewhere in the world it soon became clear that without the US, USI-Tech was heading for a quick collapse.
This prompted USI-Tech to cancel previous BTC Package investment positions, effectively wiping existing ROI liabilities clean.
To soften the blow of reneging on the advertised 140% ROI and leaving those with losses hanging, USI-Tech announced “BTC Packages 2.0”.
Question: How do you convince investors who have lost a ton of money in your scheme to invest new money?
Answer: Promise them “100% transparency”.
USI-Tech’s BTC Packages 2.0 announcement suggested the company was going to comply with US securities regulation.
Among other things, this would require USI-Tech to provide evidence of bitcoin mining revenue being used to pay affiliates.
In an update announcement sent out to affiliates earlier today, the company advised this isn’t what it meant by “100% transparency”.
We are delighted to confirm that our new fully transparent BTC 2.0 mining packages went live yesterday without a glitch and the system is working perfectly.
You can now see through the blockchain, our earnings relating to our mining capacity, which allows us to be able to offer over 565,000 BTC packages for you to purchase.
Purchases can be made with either fresh BTC or from your internal available balances from earnings on your BTC 1.0 (available very soon) or BTC 2.0 ROC as well as commissions or you can simply choose to withdraw your daily earnings.
You will also see, we have given you full transparency to our company wallet reserves.
This wallet is specifically used for us to place all your commissions ready for payout to ensure we have the available BTC for your payments.
Providing bitcoin wallets to USI-Tech affiliates ultimately means nothing.
Funds in the wallets could be sourced from anywhere (in the past USI-Tech has laundered funds through the Bitfinex exchange).
Not withstanding the deadline for responding to the Texas cease and desist has long-since passed, USI-Tech’s “100% transparency” is a far cry from required disclosures.
Disclosure violations include:
- Information about the facilities used to mine bitcoins, the costs of mining bitcoins, and whether they have successfully mined bitcoins;
- The terms of the contracts and an explanation of USI-Tech’s “non-exclusive interest” in mining contracts; and
- Information about whether the company’s financial condition is strong enough to provide a 1% daily return.
Basically all USI-Tech are doing is showing affiliates a bitcoin wallet and representing it as evidence of the company being able to pay a 140% ROI on over half a million 50 EUR investments.
Where did the seed money come from?
Obviously not bitcoin mining, as to date there’s still no evidence of USI-Tech itself being engaged in any cryptocurrency mining whatsoever.
Putting two and two together, USI-Tech is flush with cash from severing US affiliates from their money. That’s what they’re hoping to pay gullible investors who fall for BTC Packages 2.0 with.
This new money will be split between paying off BTC Package 1.0 investors and generating new 140% ROIs on BTC Package 2.0 positions.
We will … deduct what you have withdrawn out of the system less any partner rebuy you have implemented for any of your team members to give you a net figure that you can expect to be paid through the excess mining revenue we receive on a day to day basis.
Math is math though and the whole thing falls apart again once ROI withdrawals exceed new investment.
With confidence shot when a Ponzi scheme collapses (and make no mistake, USI-Tech cancelling BTC Package 1.0 positions was a collapse), reload schemes rarely last anywhere near as long as their predecessors.
Everyone’s trying to recoup losses, with new money entering the scheme even less than before the collapse.
We have already sold a tremendous amount of packs in the last 24 hours.
Even if there is an initial bump as USI-Tech represent in their update, it quickly dies down after short-lived hype.
So basically USI-Tech are back at square one. Old investment ROI liabilities wiped, zero transparency regarding external ROI revenue and a new 140% ROI being offered.
The bottom line?
If USI-Tech had been legitimately generating external ROI revenue, there wouldn’t have been any reason for this:
Q. What happens if I purchased a BTC Pack 1.0 that has already paid out returns more than 100% of its initial BTC value?
A. That BTC Pack 1.0 is now expired (terminated).
Read between the lines people (regulators certainly do), it’s not rocket science.