USI-Tech has officially cut ties with the United States and Canada. Affiliates are left hanging high and dry, many of which will not be receiving the promised compensation. Although the company had been growing rapidly as of late, I don’t think this move is surprising anyone.
Since last June, a little after USI-Tech started the distribution of their tech coin, regulators and more importantly affiliates have probing USI-Tech for answers. Evidence proving where the revenue comes from to pay the affiliates promised ROI has been lacking. In fact, instead of USI-Tech complying with the securities fraud cease and desist order they received in Texas last month, they decided it was a better idea to stop all operations in 2 countries.
USI-Tech released a statement regarding the termination, “We were utterly dismayed to learn that a large number of our sales partners extensively advertise our services on their own websites as well as on social media in a manner which is a breach of contract as well as illegal, and which gives the appearance that our service portfolio violates both US and Canadian law. Despite the measures which we have already initiated, this behavior has even intensified in recent weeks and months. This has already resulted in actions by the respective authorities against various distributors, as well as the first preliminary injunctions in response to this advertising behavior.”
USI-Tech seems to push the blame on their affiliates in this announcement. What they aren’t straightforward about is that they had until January 20th to comply w the securities complaint and chose not to do so.
They added, “The initiation of the above-mentioned official action and the court-ordered preliminary injunctions have also inevitably placed our company in a legally problematic situation. This is due to the fact that, in the event of any doubt, it cannot be ruled out that this illegal advertising by the distributors involved will cause the relevant authorities to suspect that our company itself is promoting this type of advertising activity, or at least tolerates it. This type of alarming view by the authorities would lead to unforeseeable damage for our company as well as our sales partners who observe applicable laws. We cannot subject our company or our reputable sales partners to this danger.”
Again USI-Tech seems to place blame on affiliates for misrepresenting the company. Everyone that knows anything about USI-Tech is already aware of the 140% ROI the company promotes. However, there is a bigger issue with this statement, the ‘preliminary injunction’.
The preliminary injunction is completely separate from a cease and desist. Failure to respond to the state of Texas would allow the securities officer to make USI-Tech illegal in the state of Texas only. The SEC would be the one to file a preliminary injunction. Often times, the SEC files this order under seal, allowing them to immediately freeze all assets of an alleged Ponzi Scheme. It’s not until assets are untouchable that anyone knows the company is under investigation.
So far there has been no word of this happening. It may have simply been sloppy wording on the side of USI-Tech. Even though many people wouldn’t catch this little slip up it is a huge deal if you are involved in the company.
In a final statement they said, “Consequently, we have decided to immediately discontinue our business activities as well as our sales in the US and Canada. Unfortunately, this also has a direct consequence for you as a sales partner since the cessation of our marketing operations means that we are forced to immediately terminate our contractual relationship with you.”
USI-Tech is shutting down all back-office operations. We were able to talk to one of the affiliates to get an inside look. To his knowledge, the company shut down because of “affiliates promoting illegally on websites”. Hmmm, seems to be exactly what they wanted affiliates to think. However, he mentioned affiliates were no longer allowed to recruit new member but would continue to get paid on their initial investment where they could cash out at the end of the 140-day cycle. We will have to see if funds are actually available.
Unfortunately, for some members, USI-Tech has the ability to come after them directly or holds the right not to release their funds. Those affiliates found to be advertising unlawfully or holding over 2 accounts against company rules may not receive their funds back. So, this could turn into a bigger deal then we thought.
We saw a ton of news leading up to this point, it doesn’t surprise us either. As one of the biggest MLM companies in the cryptocurrency market, this could present serious issues for others refusing to show evidence. Either way, this is not a good look for the company, and we highly doubt wrongful advertising was the reason for them to remove 2 of the biggest markets they have. Anyone still holding on to those promises from USI-Tech might want to rethink the company’s intentions. I can’t see any it’s worth the risk.