Company USI-Tech, which is based in the United Arab Emirates and is engaged in bitcoin mining, has published an announcement on its website, according to which promised to re-open its doors to North American users.
Our lawyers recognize that issues of legal regulation in Texas, Washington, Minnesota and Hawaii belong to the compensation structure and marketing tactics of the organization. As a result, the company USI decided to stop providing opportunities for users in North America to recruit new members, to Commission and to remove the bitcoins until further notice.
It seems that the President of the company Horst Jicha kept his promise that he made in an interview six days ago.
He promised to continue working with the legal team of the USI to allow North Americans to withdraw funds or continue to receive 1% return on investment.
The Commission on securities and stock exchanges back in the game
The Commission on securities and stock exchanges of the USA have intensified after the credit scheme BitConnect in early 2018, claiming that the company was really a Ponzi scheme, which illegally increased the value of token BCC to more than 4.1 billion U.S. dollars.
Shortly thereafter, the company received an order prohibiting further unlawful action, and BitConnect announced the closure, with the result that the cost of token BCC fell from more than 435 dollars to less than $ 6 in less than a month.
User of the social network SteemIt @thegrinder induces many signs that point to the fact that companies like BitConnect and USI, ready to escape with the currency of the user which was hard-earned. Here are some of them:
On the websites of such companies contains a lot of spelling and grammatical errors due to the fact that their staff are underresourced.Guaranteed high yield investment.Indefinite fees for referring new users to the platform.Request of cryptocurrency in exchange for cash, which can only be purchased through tokens of the company. This inflates the cost of a new token, which eventually falls off, when will come into effect the regulatory authorities.
Participants who work with USI, earn profit of 1%, payable in bitcoins, not cash. Although this makes the company more prudent USI, it still holds the promise of incredibly high profits and forces users to block funds for 140 business days before removing them.
Forced buyback is another sign of financial pyramids.
So what’s next?
It seems that USI strives to learn from mistakes BitConnect and actually intend to give North American customers another chance in the promotion of business, earning commissions and, ultimately, realizing their profits by transferring bitcoins in private wallets.
Despite good intentions, the company has yet to explain how to comply with the rules of the Commission on securities and stock exchanges, as associated companies continue to promote USI, being ill-informed about these rules.
Only time will tell what will happen next. At this point it’s safe to say that the best thing that can make any investor is to risk only money that he can afford to lose. Even if the money presented in the form of a token.