The gulf between USI-Tech management’s narrative and what actually happened continues to widen, following a
January 31st news-release
issued by the Texas Securities Board.
In the news-release the Securities Board describes USI-Tech as
a secretive, Dubai-based firm promising it could deliver low-risk, triple-digit returns from investments tied to bitcoin mining.
USI-Tech solicited Texas investors through targeted craigslist advertisements, YouTube videos, and standalone websites.
The Securities Board reaffirms that it issued USI-Tech with a cease and desist because
neither the two sales agents named in the order
nor the company
is registered to sell securities in Texas.
As pointed out by the Securities Board, rather than prove to US regulators it wasn’t just
shuffling newly invested funds around to pay existing investors
,
within three weeks of the order USI-Tech announced it would cease sales operations in the U.S. and Canada.
Clarification from the Securities Board is in stark contrast to USI-Tech’s own version of events.
On or around January 25th
USI-Tech management claimed
the company was working with regulators and on the verge of reopening in the US.
Horst Jicha, one of USI-Tech’s four co-founders, explicitly told investors “USI-Tech never had a problem in the USA”.
The company’s US law firm, Hart David Carson, meanwhile stated it was “actively engaged” with regulators in Texas and
working to identify the principal state-based issue, resolve said issue accordingly, and pursue/attain any and all necessary state-based qualifications and/or licensure.
How strange the Texas Securities Board failed to mention any of that in their news-release.
🤖 Quick Answer
What action did the Texas Securities Board take against USI-Tech?The Texas Securities Board issued a cease and desist order against USI-Tech, a Dubai-based cryptocurrency investment firm, for operating without proper registration to sell securities in Texas. The order targeted the company and its two sales agents who solicited Texas investors through Craigslist, YouTube, and dedicated websites promoting bitcoin mining investments.
How did USI-Tech market its services to potential investors?
USI-Tech employed targeted marketing strategies including Craigslist advertisements, YouTube videos, and standalone websites to solicit investments from Texas residents. The company promised low-risk, triple-digit returns from bitcoin mining-related investments, attracting investors through these diverse digital channels.
Why did the Texas Securities Board question USI-Tech's legitimacy?
The Securities Board challenged USI-Tech's compliance by questioning whether the company was legitimately investing funds or simply
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