Crypto Ponzi USI-Tech Gets Banned From Operating in Ontario, Canada
USI-Tech, the Dubai-based cryptocurrency and forex exchange platform, has been banned from operating in Ontario, Canada. The decision was taken by the Ontario Securities Commission (OSC) and it has published detailed reasoning behind the decision.
OSC Bans USI-Tech from Ontario
According to the OSC, one of the main reasons why the OSC decided to ban USI-Tech from operating in Ontario is due to the fact that the company’s management throws their Canadian affiliates “under the bus.” As reported by Behind MLM, USI-Tech had different problems in Ontario.
In February 2018, the OSC issued a cease trader order against the platform. However, there was no reason given behind this decision but it was at the law firm’s request. Moreover, the OSC opted to conduct the USI-Tech case through a written hearing.
The company sent a reply email to the commission that was signed off on by USI-Tech Management and in which the firm tries to get out of the cease and desist. They say that the company has never sold product directly in Canada since the sales were made through local independent traders.
They went on explaining that investors were to blame because they agreed to the terms and conditions in which they state that “products may not be purchased in violation of “regional prohibitions.”
Other things they mention is that they do not have any Canadian office and that there were no marketing activities targeting the Canadian market. Moreover, after the cease and desist issued, USE-Tech blocked access to its website from Canadian IP addresses. Additionally, the firm informed that they will not conduct any activity in Canada.
USI-Tech seems not to be registered to offer securities in any jurisdiction in which they have been operating. The Securities Commission ruled that nothing in the email justified securities fraud, thus, the exchange has been banned in Ontario on January 15.
The USI-Tech Ponzi scheme harmed investors from different countries and could have generated tens of millions of dollars in losses. During the last bull market experienced by the crypto space, several firms released different scam Initial Coin Offerings (ICOs).
However, it seems that after a whole year of a bear market there are firms that keep harming investors with fraudulent investments.