USI-Tech, a company under scrutiny for its alleged Ponzi scheme operations, circulated marketing materials in early October 2017 claiming a $70 million mining power acquisition from BitFury Group. This purported deal, touted at a VIP event in Mallorca, Spain, quickly came under question by industry observers.
Irish USI-Tech affiliate Aoibhin Sheehy, known as "KingsOfBitcoin," detailed the supposed acquisition in an October 7th Steemit post. Sheehy claimed the deal, inked for "years of longevity" to USI-Tech, was typically unavailable to most companies approaching BitFury due to its significant demand on resources. This narrative, suggesting a unique and powerful position for USI-Tech, quickly spread across social media platforms among other affiliates. The Mallorca "VIP" event, where USI-Tech management allegedly revealed the contract, served as the primary source for these investor claims.
BitFury Group positions itself as a comprehensive blockchain technology company. It develops both software and hardware solutions, enabling businesses, governments, and individuals to securely transfer assets across the blockchain network.
BitFury's Chief Information Officer, Alex Petrov, directly refuted the existence of any contract within 48 hours of the claims circulating online. Petrov's explicit statement, "USI Tech doesn't sign any contracts with Bitfury, contact are fake. This is officially confirmed from Bitfury side," directly countered USI-Tech's public assertions. The swiftness of BitFury's response highlighted the significant disconnect between USI-Tech's marketing and the reality of their business relationships.
The alleged BitFury contract surfaced during a period when USI-Tech already faced accusations of operating a Ponzi scheme, reportedly active since late 2016. This was not the first instance of USI-Tech disseminating false information; the company had previously made unsubstantiated claims about registering with the U.S. Securities and Exchange Commission (SEC). A simple search of the SEC's EDGAR database quickly disproved any such registration. Lies about major partnerships or regulatory compliance often serve to attract new investors and maintain confidence in schemes that rely on continuous cash flow from new participants to pay earlier ones.
Further substantiation of USI-Tech's deception came on October 10, 2017, when Alex Petrov released video evidence. The footage showed USI-Tech owner Horst Jicha on stage at the Mallorca event, directly telling VIP affiliates about the BitFury acquisition. This direct endorsement by a principal of USI-Tech, despite BitFury's unequivocal denial, underscored the extent to which the company's leadership was involved in promoting the false narrative. The video provided concrete proof of the fabricated claims being spread from the top down.
The incident added to a pattern of misleading statements by USI-Tech as regulators globally increased their scrutiny of cryptocurrency-based investment platforms.