USI-Tech, a company registered in Dubai, is quickly expanding in many regions of the world including the North America, Europe, and notably in Guam.
I know people who have invested tens of thousands of US-dollars-worth-of-Bitcoin in the company, which promises 140% return on investment, paying out 0.75 to 1.25% each week day.
I've been watching on the sidelines for several months and recent news has raised a lot of red flags - every red flag, in fact.
If promise of consistent, market-beating returns and a pyramid-shaped affiliate commission structure isn't enough to raise an eyebrow, surely the recent activity around their "ICO", Tech Coin, and US/Canada court orders should have you running for the hills. Might I add that the cryptocurrency-craze is an ideal monetary platform for a scheme, as the playing field is far less regulated and confusion runs rampant.
If it's too good to be true, it usually is. Let's start by reviewing the criteria that define a Ponzi scheme (I know, I said the P word. Hear me out). A Ponzi scheme is an investment fraud where clients are promised a large profit at little to no risk. Companies that engage in a Ponzi scheme focus on attracting new clients to make investments. This new income is used to pay original investors their returns, marked as a profit from a legitimate transaction. Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart.
I've not managed to discern or substantiate true sources of revenue to fuel the company's lucrative promises, beyond the Bitcoin inflow from the growing base-level of the recruitment pyram- I'm sorry, tetrahedron ...let's call it that. Earlier this year, USI-Tech claimed that their profits came from ‘automated trading’ software. USI-Tech then claimed to use ‘magnets’ and ‘artificial intelligence’ to create ‘almost free energy’ in order to earn bitcoin faster than their competitors. Members of USI-Tech are instructed not to ask for proof. The only evidence of their 'patented almost free energy mining technology' is a screenshot of a presentation slide of a blurry blueprint drawing.
That brings us to our 6th red flag: the "Tech Coin" ICO. Firstly, there's no white paper released and they've already raised hundreds of millions in Bitcoin. They claim the coin is backed by the mysterious and magical physics-defying technology.
When a Tetrahedron scheme collapses, there are MANY losers and very few, wealthy winners. The tipping point, when all the smiley laughter turns to utter devastation, is initiated by (a) government intervention, (b) the eventual and inevitable decline of client-base growth, and/or (c) mysterious disappearance of all the unfortunate money that 'went in' and never fulfilled it's lucrative promise.
Hmmm... wouldn't a coin offering be a great way to raise funds to propagate a destined-to-fail pyramid scheme? To pay out Bitcoin Package investors, then to disappear without a trace?
Let's see how this develops. It certainly looks like an exit scam to me.
This is only my opinion. I caution anybody who’s getting involved in an investment that they don’t quite understand to do their own research and get independent third party confirmation. Hard-earned money is not easily made, but unfortunately it is easily lost. Be careful!
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