In a move that is unlikely to have surprised anybody, USI-Tech has severed ties with the US and Canada.

Rather than operate legally in the US and Canada and register with the appropriate regulatory bodies, USI-Tech has instead elected to abandon its legal obligations and focus on scamming investors elsewhere in the world.

USI-Tech faced increasing pressure to prove it wasn’t a Ponzi scheme following a
securities fraud cease and desist issued in Texas
last month.

Up in Canada, the provinces
British Columbia
,
New Brunswick
,
Nova Scotia
, and
Manitoba
had separately issued USI-Tech investor warnings.

It is the Texas cease and desist however that, from a regulatory perspective, was of the most significance.

In order to operate legally in Texas (and the US in general), USI-Tech had until January 20th to provide evidence of external revenue being used to pay affiliate ROIs.

The company has been promising to provide this to its affiliate since last June.

US and Canadian investors who perhaps hoped the company would finally prove to the world it wasn’t a Ponzi scheme, instead woke to a backoffice message from USI-Tech informing them they’d been dumped.

In what USI-Tech is calling an “extraordinary termination of distributor agreement”, the Ponzi scheme attempted to blame its outing as a scam on its affiliates.

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.

Now to make it clear right off the bat, while the Texas cease and desist did target two investors with respect to promotion of USI-Tech, 
it also demanded USI-Tech register its securities offering and provide evidence it was not operating as a Ponzi scheme.

This is something USI-Tech does not address in its “blame the affiliates” termination letter.

The next paragraph in the termination agreement is significant, as it suggests the SEC itself has launched legal proceedings against USI-Tech.

The initiation of the above-mentioned official action and the court-ordered preliminary injunctions has 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

🤖 Quick Answer

Why did USI-Tech withdraw from US and Canadian markets?
USI-Tech ceased operations in the US and Canada to avoid regulatory compliance requirements. The company faced a securities fraud cease and desist order in Texas and investor warnings from four Canadian provinces. Rather than register with regulatory bodies, USI-Tech chose to abandon these markets and redirect operations elsewhere globally.

What regulatory actions preceded USI-Tech's market exit?
Texas issued a securities fraud cease and desist order against USI-Tech, representing the most significant regulatory action. Additionally, four Canadian provinces—British Columbia, New Brunswick, Nova Scotia, and Manitoba—independently issued investor warnings. These enforcement actions prompted the company's strategic withdrawal from North American operations.

What was the significance of the Texas regulatory order?
The Texas cease and desist represented the primary regulatory catalyst for USI-Tech's market exit. It established legal precedent preventing the company from operating legally in Texas and

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