USI Tech Crypto MLM Ponzi Scheme Likely to Get Permanent Ban from Ontario after Hearing
At this stage, it appears to be a mere procedure. The Ontario Securities Commission is seeking to have USI-Tech permanently banned from its jurisdiction. This order was requested via a Statement of Allegations that was filed on December 4, 2018. The allegations are similar to those made in a cease and desist issued against USI-Tech by Ontario in February 2018.
The order was issued after liability finding held by the AMF, which regulated securities for Quebec. It was found that USI-Tech has engaged in the illegal distribution of unregistered dealings and securities contrary to various sections of the Quebec Securities Act. In March, USI-Tech was permanently kicked out of Quebec.
Similar Orders Being Sought
The Ontario Securities Commission is essentially looking for orders like the ones the AMF got. A hearing is already scheduled but the date of the hearing is yet to be made public. However, it is unlikely that any officials form USI-Tech will dare show up for the hearing. USI-Tech went under in January 2018; just a few weeks after Texan authorities issued it with a cease and desist.
The Ponzi Scheme Charade
The Ponzi scheme officially dropped any pretense of crypto mining last October. However, this was not before it emerged that the principals in USI-Tech were buying luxury apartments and cruising in Lamborghinis. Despite the cease and desist issued by authorities in the US and Canada, the authorities have not pursued any more charges against the officials.
The Close of the Crypto Ponzi scheme
In October 2018, the company finally announced the end of its suspicious investment scheme. For one, the packages looked too good to be true. It caught the attention of US authorities who demanded proof of the claims being made. When that happened, they panicked and shut down all operation in April 2017 in the US. However, they kept up the charade about crypto mining.
What was worrying was that people started to buy into the Ponzi mining scheme despite the company’s run-ins with the law. After too much pressure from investors, the company finally made this recent announcement.
Off the Shelf Ponzi Scheme
Mining crypto is usually cheaper than buying. This has led to a surge in mining popularity. Various enterprises based on mining have been set up. USI-Tech took advantage of this. They promised to mine crypto for investors. However, they did not have any equipment.
Instead, they took money from new investors to pay old investors. The company said in February that funds from the BTC2.0 packages would go towards paying those in the BTC1.0 packages. Besides that, the founders have been using funds to live luxurious lives. For instance, the founder Jicha was seen riding a yellow Lamborghini.
When the Ponzi scheme began to collapse, they did not give up. Instead, they doubled down and claimed the high mining costs were why their scheme was failing. It is worth noting that other similar scams have blamed mining costs too.