Update 12/23/2017, The Manitoba Securities Commission (MSC) is issuing a warning to Manitobans about USI-TECH: http://www.mbsecurities.ca/news/current/usitech-dec-2017.html
Update 12/21/2017, Financial And Consumer Services Commission of California issue investment alert on USI- TECH Limited. : http://fcnb.ca/fraud-alerts.html?fb_37818809_anch=38267349
Update 12/20/2017, Texas Securities Commissioner Travis J. Iles entered an Emergency Cease and Desist Order Dec. 20 against USI-Tech Limited. https://www.ssb.texas.gov/news-publications/bitcoin-promoter-usi-tech-hit-emergency-order
Update 12/20/2017, British Columbia Securities Commission issues warning on USI-Tech: https://www.bcsc.bc.ca/Enforcement/Investment_Caution_List/USI-TECH_Limited/
I was hoping my first blog post would be about blockchain projects that piqued my interest. But after hearing enough buzz about USI-Tech I decided to give my opinion on them instead of QTUM & UBQ.
Many friends and family members have contacted me in recent months about USI-Tech. To me, it was easy to quickly see the scam, but for them, it wasn’t so easy since they were getting paid. Last week I decided to go to an invite-only meeting in Spokane about USI-Tech to see how it was being pitched, who was pitching it and hold their feet to the fire with basic questions.
Location of meeting: 9212 E Montgomery Suite 203, Spokane Valley, WA
Companies website: http://northwestdbc.com/
Below are the claims they made throughout the meeting.
- They recommend you buy bitcoin through them.
- You buy “packets”, starting at $60 or equivalency of BTC. These packets last 140 days, at the end you can roll profits over and start again.
- They pay you 1% a day for 140 days.
- They claim that they have a proprietary trading bot/algorithm that gives them an unfair trading advantage, their traders use this on a bitcoin forex exchange (which doesn’t exist). They kept repeating “It automates arbitrage.”
- They say the owners are “Squeaky Clean” one guy even got up to tell us how his connections in the CIA, FBI, MI5 did background checks on the owners and they are impeccable. Nobody in the audience questioned this.
- They started to claim that the packets you bought were for mining contracts after saying they trade your funds with their super bot.
- They couldn’t say which pool they are mining with.
- They claim to have bought $70 million USD worth of mining rigs recently and will comprise of 2% of the BTC mining power once they are up and running.
- They had a toolbox full of BS marketing videos, they are replete across Youtube. They showed one where one of the owners of USI is walking through a commercial mine making it appear that it was USI’s mining operation. https://twitter.com/genesismining/status/933973704513605632?lang=en
- This video was enough evidence that the audience didn’t ask any questions. https://www.youtube.com/watch?v=hsGiWp7AvGk
- It isn’t their operation at all. A USI founder either broke in or filmed inside Genisis’s mining operation without permission. https://twitter.com/genesismining/status/933973704513605632?lang=en
- They then went into how a law firm “Hart David Carlson” gave their legal opinion, vetted their products to make sure they were SEC compliant. They claim that USI’s unregistered securities offering is a “legal product”. https://www.youtube.com/watch?time_continue=120&v=EvYT8iJEioQ
- The proof of this legal opinion was presented in.JPGs. No one questioned it.
- They claimed that because USI-Tech was a foreign private company that they didn’t need to disclose any of their tradings. They also weren’t able to tell me who any of their traders were.
- They claimed that because they were a private foreign company that it wasn’t necessary to be licensed in the US. Again, no one in the room questioned this.
- Eventually, they started talking about how they are creating their own token and having an ICO in 2019 and that current members had access to pre-purchase tokens before the ICO was available to the public. You buy these tokens in packages starting at $600 or equivalent in BTC – $60k or equivalent in BTC. Pre ICO token supply was 500,000,000 EUR, that’s 500 million Euros. Once current members had bought all of this supply an additional 500 billion would be offered during their ICO, that’s happening in 2019. Hype Vid that they showed: https://www.youtube.com/watch?v=BAyMjFN8ki8
- What does their token do? Their promo video was hype, it said nothing, just another video of stock images and video with a robotic voice over. Listen to their CEO pitch their ICO and literally say nothing: https://www.youtube.com/watch?v=kX18g97cmqI
- Oh, and their white paper will come out “later.” They don’t know who their developers are going to be yet. Nobody questioned this. WTF people!
Founders/Executives: Jao Severino, Ralf Gold, Mike Keifer, Harst Jicha
Jao is banned from financial activity in Portugal because of another scam he was involved with. https://www.bportugal.pt/en-US/OBancoeoEurosistema/ComunicadoseNotasdeInformacao/Pages/combp20140523.aspx
Clues to look for in the future.
- You buy bitcoin yourself through Coinbase. If someone tells you to buy through them it’s likely a scam.
- If a crypto project website doesn’t disclose who is behind it then it’s a scam.
- If you have to buy their coin from their own proprietary exchange it’s a scam.
- If the project isn’t listed on coinmarketcap.com it’s a scam.
- If you have to buy packages it’s a scam. When you buy crypto you can buy at any denomination you wish.
- If they are offering an absurd constant ROI and they haven’t licensed it’s a scam.
Attributes that make you susceptible to scams and ruthless sharks.
- You’re poor.
- You think residual income should be easy.
- You don’t do your own research.
Do your research! Protect your hard earned money and trust your gut. Get rid of all your friends that continuously pitch you on MLM opportunities, they are wasting your life.
Edgar Database: https://www.sec.gov/edgar/searchedgar/webusers.htm
Help Stop Affinity Fraud In Your Community: https://www.investor.gov/sites/default/files/Affinity-Fraud.pdf
Further research by Ethan Vanderbuilt: http://ethanvanderbuilt.com/2017/07/19/usi-tech-scam-yes-opinion/
Sheet Explanation: https://youtu.be/YSIO5YSuF_A
Comprehensive USI Report: https://drive.google.com/file/d/1ZFhILyzlvd01K2UFzzGRr_sq12T_CTq0/view