USI-Tech’s BTC Package 2.0 “100% transparency” is a sham
When the Texas Securities Board issued USI-Tech with a cease and desist last year, one of the primary concerns was lack of disclosure.
At the time USI-Tech were claiming to generate ROI revenue through bitcoin mining.
In their cease and desist, the Securities Board pointed out a complete lack of evidence of bitcoin mining taking place or being used to fund ROI revenue.
Rather than provide this evidence, USI-Tech ceased business operations in the US.
Unfortunately however there was no getting around the US being USI-Tech’s primary source of invested funds.
Despite having access to what was left of US investment, when combined with investment from elsewhere in the world it soon became clear that without the US, USI-Tech was heading for a quick collapse.
This prompted USI-Tech to cancel previous BTC Package investment positions, effectively wiping existing ROI liabilities clean.
To soften the blow of reneging on the advertised 140% ROI and leaving those with losses hanging, USI-Tech announced “BTC Packages 2.0”.
Question: How do you convince investors who have lost a ton of money in your scheme to invest new money?
Answer: Promise them “100% transparency”.
USI-Tech’s BTC Packages 2.0 announcement suggested the company was going to comply with US securities regulation.
Among other things, this would require USI-Tech to provide evidence of bitcoin mining revenue being used to pay affiliates.
In an update announcement sent out to affiliates earlier today, the company advised this isn’t what it meant by “100% transparency”.
We are delighted to confirm that our new fully transparent BTC 2.0 mining packages went live yesterday without a glitch and the system is working perfectly.
You can now see through the blockchain, our earnings relating to our mining capacity, which allows us to be able to offer over 565,000 BTC packages for you to purchase.
Purchases can be made with either fresh BTC or from your internal available balances from earnings on your BTC 1.0 (available very soon) or BTC 2.0 ROC as well as commissions or you can simply choose to withdraw your daily earnings.
You will also see, we have given you full transparency to our company wallet reserves.
This wallet is specifically used for us to place all your commissions ready for payout to ensure we have the available BTC for your payments.
Providing bitcoin wallets to USI-Tech affiliates ultimately means nothing.
Funds in the wallets could be sourced from anywhere (in the past USI-Tech has laundered funds through the Bitfinex exchange).
Not withstanding the deadline for responding to the Texas cease and desist has long-since passed, USI-Tech’s “100% transparency” is a far cry from required disclosures.
Disclosure violations include:
- Information about the facilities used to mine bitcoins, the costs of mining bitcoins, and whether they have successfully mined bitcoins;
- The terms of the contracts and an explanation of USI-Tech’s “non-exclusive interest” in mining contracts; and
- Information about whether the company’s financial condition is strong enough to provide a 1% daily return.
Basically all USI-Tech are doing is showing affiliates a bitcoin wallet and representing it as evidence of the company being able to pay a 140% ROI on over half a million 50 EUR investments.
Where did the seed money come from?
Obviously not bitcoin mining, as to date there’s still no evidence of USI-Tech itself being engaged in any cryptocurrency mining whatsoever.
Putting two and two together, USI-Tech is flush with cash from severing US affiliates from their money. That’s what they’re hoping to pay gullible investors who fall for BTC Packages 2.0 with.
This new money will be split between paying off BTC Package 1.0 investors and generating new 140% ROIs on BTC Package 2.0 positions.
We will … deduct what you have withdrawn out of the system less any partner rebuy you have implemented for any of your team members to give you a net figure that you can expect to be paid through the excess mining revenue we receive on a day to day basis.
Math is math though and the whole thing falls apart again once ROI withdrawals exceed new investment.
With confidence shot when a Ponzi scheme collapses (and make no mistake, USI-Tech cancelling BTC Package 1.0 positions was a collapse), reload schemes rarely last anywhere near as long as their predecessors.
Everyone’s trying to recoup losses, with new money entering the scheme even less than before the collapse.
We have already sold a tremendous amount of packs in the last 24 hours.
Even if there is an initial bump as USI-Tech represent in their update, it quickly dies down after short-lived hype.
So basically USI-Tech are back at square one. Old investment ROI liabilities wiped, zero transparency regarding external ROI revenue and a new 140% ROI being offered.
The bottom line?
If USI-Tech had been legitimately generating external ROI revenue, there wouldn’t have been any reason for this:
Q. What happens if I purchased a BTC Pack 1.0 that has already paid out returns more than 100% of its initial BTC value?
A. That BTC Pack 1.0 is now expired (terminated).
Read between the lines people (regulators certainly do), it’s not rocket science.
Wallets are now showing 0 balance.
Affiliate wallets (backoffice balance) or the “100% transparency” bitcoin wallets?
Reminds me of BannersBroker and their new version 2.0 BS they came out with when their Ponzi collapsed. Same pig just a new dress and name.
USI have provided false information on mining activities in the back end (only numbers on a screen, no pool information), unfortunately for them this still does not even add up.
QUICK MAF – the mining activities if you add them up from 31st of December to the 27th of Feb = 680.31 BTC. But accounting by the hashing power they claim to have via the back-end, calculating at 100 petahash for the first 30 days + 110 petahash for the next 27 days their mining rewards would only be = 504.97 BTC.
Even if we say the back-end may be faulty and is underestimating, lets calculate 110 petahash for the entirety of the 58 days we still only get = 530.7 BTC mined.
That is STILL a discrepancy of 149.61 BTC or $1,538,871.25. Quite a lot of extra money they are claiming to have generated out of thin air. Quick tip Horst, your math sucks.
But because we are generous, let’s give USI-Tech and old Horst the benefit of the doubt, let’s say for a second USI-Tech mined 680.31 BTC which = $6,972,565 at today’s market rate.
Now lets go over the ETH they have mined in the last 58 days. My ninja skills have accounted for 4493.496 ETH mined over 58 days (using the data from both new and old pool), which at today’s rate = $3,947,985
This gives us a total $10,920,550 mined by USI-Tech in 58 days, if we divide this by the last known member count of 800,000, USI-Tech have mined $13.65 for each member in 58 days.
Even if we were to take the figures at the top of the market in early Jan (impossible as most was mined after), USI still only manages to buy a warm dinner for one at a 3 star restaurant.
If all they’re doing is providing numbers on a screen in affiliate backoffices to represent mining earnings, they can obviously fudge the numbers as they see fit.
Set up a script tying mining figures provided to new investment and off you go. Or just do it Paul Burks style and enter random numbers.
It still all comes down if USI-Tech had legitimate mining they’d have provided the requested information to the Texas SEC (and their affiliates from day 1). This is all smoke and mirrors theatrics.
Exactly, but they aren’t even smart enough to put out numbers that actually add up to what they COULD have mined based on their hashrate.
What blows my mind is that some of the leaders – intelligent people with large USI teams – still believe in Horst’s integrity.
They simply cannot fathom that he (and, of course, Ralf – but that goes without saying) are crooks.
Mind boggling. Someone should write a book about the cult-like power of ponzi schemes.
They don’t believe in his integrity. They believe they have no choice but to still pretend to follow otherwise their cheques go KAPOOF.
You can bet Horst is still paying the top leaders to keep the cows coming to pasture, whether they are in the US or not.
I am doing just that. I am using my 14 years of experience in exposing these Ponzi’s and all the other forms of cyber-crime that use this technique.
Hope to have it done by June. My problem is trying to keep it shorter than War and Peace.
I’d like to read it.
Totally 100% agree… and let’s not forget that if they were actually mining there would have been no need for them to pretend as if the Genesis mining facility was theirs or that they had a $70 Milllion partnership with Bitfury.
All they have is numbers on a screen and there are still people acting as if this is proof that they are mining! Unbelievable!
Ponzi 2.0 is in full effect and there are plenty of sheeple who are more than willing to ignore facts because they are too blinded by greed.
LOL. So the oh so difficult and complicated process of “showing” us transparency was “solved” by showing us one fucking BTC wallet address?
Obviously thats not transparency at all and they could of shown that wallet address anytime in the last year lol.
I’m slowly losing faith in mankind. Darwin was right, the stupid ones should stop breeding.
what usi tech did is used all the small invester money in united states. They said, the hell with you, I’m going to take care my foreign investors.
Telling people they sold so many packages in 24hrs, its all bullshet so people keep buying packages so they can used your money to take care the foreign investors.
Same as the tech coin, its another rip off scheme to get more money. The federal government should shut usi down for ripping off good honest people from united states.
If the federal government was effective in shutting these scams down you wouldn’t have the same “leaders” go from one scam to the next ripping off their downline.
The slow pace of the SEC allows for the con men and women in the USA to rob the naive and gullible of society over and over again.
It really is getting hard to feel bad for those that get conned more than once by the same people.
You have to understand that it makes no difference what country you are talking about, unless people come forward and file a complaint, no investigation can be started. And there must be a lot of people filing a complaint.
When people refuse to believe they are a victim, they won’t file a complaint. Also that investigations take time. They are not done overnight. That only happens in movies and TV shows.
Actually Texas moved very fast with their cease and desist order. I am sure the SEC is having the FBI or the Secret Service investigating USI here in the US.
In fact I wouldn’t be surprised to learn that it is a joint agency investigation. Remember, the SEC can only bring civil charges. It is up to the Federal Law Enforcement agencies to file the criminal charges.
This gives some revelations as to what went down. Might be old news but I haven’t seen it here.
youtube.com/watch?v=3EnqJcQGnaM
What sort of brainless twit would buy a BTC 2 package. They should be tested for mental issues.
True believers and round one victims desperate to try and recoup some of their losses.
And now it seems techcoin is launched (Bitconnect 2?)
I know SO MANY people who were total true-believers in this. One of them “met” with the owners and did background checks and all the rest and were CONVINCED this was for real.
So happy I didn’t buy it. Never seemed right to me, just numbers on a screen.
Someone I know actually KNOWS a real mining person and they said with the number of new bitcoins USI said they were creating, the market would be reflecting that and he said there’s not a blip so USI is NOT mining. Glad I asked.
So USI Tech says is now open again to US customers… so I put nearly 5 btc into packages mid Feb…. a few days later all the money is gone and the packages are cancelled.
They use their TOS are a free right for them to steal everyone’s money, with a lame promise that someday they will pay it back maybe.
They blame the loss of funds on other members misuse of their platform (say what?), but that was old news, my money was fresh, just put in, so where did my money go?
In their thieving pockets. They say their TOS says you can lose all your money and they use that as right to steal it.
They have ruined crypto for me and others, they are just liars and thieves.
This is why regulation is needed. They are just white collar criminals. They belong in jail.
You bought packages in mid Feb after knowing all that had happened in the last few months??
If that’s the case odds are you were going to lose your money sooner or later anyways, may as well be now.
Wow, even with all this negative stuff you just bought in? That’s special.
USI-TECH..LIES..LIES AND MORE LIES
youtube.com/watch?v=UjU7gges2hM
You hear and see nothing more of this parasite Mike Kiefer !?
youtube.com/watch?v=qcvfL0bnHMs
TechCoin spam went out earlier today. They’re stalling on BTC Package 1.0 payments because they’re waiting for gullible idiots to invest in TechCoin.
Some of that money will be used to pay 1.0 ROIs, most of it will be kept by USI-Tech. Investors in TechCoin will be left holding yet another pointless altcoin.
That Rohr fella has just given me the best belly laugh since the launch of TechCoin.
I’m sorry Rohrs but idiots like you ruin crypto for everyone.
How could you read hundreds or thousands of people complaining that USI-Tech had just stolen their money, decide to invest 5 bitcoin into the same platform that people are saying just stole their money- and then scream for regulation?
I’m sorry dude but Chuck Nasty was right, it was just a matter of time before you threw that money out the window.
Regulators have a part to play, but it’s not bailing out people whom should have known better.
If they had stolen your US dollars, who would you be blaming then ???
USI-Tech is NOT cryptocurrency.
USI-Tech was a fraud which used cryptocurrency as a cover.
Mike Kiefer – He actually responded to a facebook PM a few days ago. They are still active.
If anyone needs a name to take to the cops, start with Mike Kiefer.
He is splashing our cash around and we have people who lost their life savings.
Mike, I am going to make sure you pay for this. I am coming for you.
I am just so frustrated, I gave everything I had to this company, and I signed up people I cared about.
I just wanted to say something here, I feel taken advantage of by USI, and hope they are true to their word about repaying us.
they are repaying everyone back now, so its all good right? NOT!
I only put in a few hundred pound but my daily payback is around 60p.
So if you invested a few thousand, you better hope the company stays afloat for the next ten or so years for you to get your cash back.
it will take USI 5.5 years in order to repay my 1 BTC worth of packages bought in December at the current payout rate….
Well, it would IF they ever intended to pay anyone anything.
MIKE KLINGLER WAS SUBPOENAED!!!
Cool only have to wait 10 weeks before I reach my minimum payout amount.
no wait , make that 100 weeks.
Right. Same here. I received emails about USI-Tech where the people sending the emails (there were 2 of them) had supposedly did all the research on this company and was absolutely convinced that USI-Tech was legit.
Not only that, but it was the “best thing they had ever seen” in their considerable online experience!
I had personally seen, and been scammed by, much smaller crypto scams than USI-Tech, so when USI came along, I already knew what it was. It just had a new face and some different lies, but it was exactly the same as the others.
What surprised me was just how big USI-Tech and BitConnect became. I never would have thunk it – that they would get that big.
But, having long learned my lesson from previous smaller scams, I never joined or referred anyone to USI-Tech or BitConnect.
On the contrary, when I was asked about it, I said it was an outright scam and to stay away from it. I told people on a popular YouTube channel at the time to get out of it, if they were in it, right before the collapse.
Some people, of course, did not believe me and actually got mad for making a comment like that.
The delusion that some people subject themselves to is really amazing – and all this coming from sites that never even revealed who the owner was or what they were really doing with the money!
Sending thousands, and in some cases, tens of thousands of dollars to people you don’t know, is most definitely delusion on a grand scale.
Rohr, I am very sorry to hear that – but what on God’s green earth possessed you to put more money into a company where the lie was already let out of the bag, very well-known, and publicized?
You only have yourself to blame for that one.
So… they are now saying that because more people are investing in 2.0 packs they can “speed up the repayment of 1.0 obligations”
Last time i logged a ticket this was thier response…
I explained i wasnt happy with 100% return and this is what i got…
I bought 9 packages back in October despite being a little skeptical, so I only put in what I was prepared to lose, not that anyone wishes to lose money.
I too experienced a person leading a group saying he had met the owners and done his research etc etc.
Why I didn’t do a little research of my own I will never know, as I don’t usually jump into things like this and did not sign anyone up or convince them to buy their, just in case it was a ponzi scam.
This guy is still defending them and quite adamant that they will honour their promise to pay everyone back. which I just do not understand unless he’s being paid to keep dragging the sheeple along.
I did not have much experience with bitcoin or anything like this and it has been a valuable lesson.
My plan was to withdraw what I initially put in after the 140 days as leading up to them falling over I was getting a little nervous that I had indeed taken part in a scam and probably would not see my money again.
As of today they have announced that they are pulling out again out of the US and Canada after resuming “business as usual” in those countries only a few weeks ago.
I dare say, the same will happen here in Australia, and everywhere else. It is only a matter of when.
I don’t understand why some are still holding onto hope and believing all the garbage they are feeding us with their so called updates.
The repayments we are being drip fed and you can’t even withdraw until the repayment reaches the value of a package which at this rate will take years, if not decades.
So anyone still thinking they will get their money back, you won’t, move on and learn from it. Although in saying that I really feel for those who had a lot to lose.
So you do understand.
Daily repayments decreasing in value slowly….. so it will take just over 5 years to get my money back.
The wheel of Karma started turning the day USI stole our money. The wheel is turning my friends. I assure you…. their time will come.
Next time, don’t “give” network marketers your money. You won’t have to wait for Karma.
Well there is definitely a correlation between the timing of when the Texas Securities Board issued a cease and desist, and USI all of a sudden blaming it on shady practices on members stealing from USI.
At the time I had no idea of the cease and desist order and could not understand how this could have happened, it just didn’t make any sense at all. It does now, of course.
Oh the irony when they then have frozen all accounts, and stolen from everyone!
I didn’t understand it at the time, and wanted to see the evidence but having dug a little deeper it is very clear what has really happened.
Hi, I invested a few thousand dollars in usi tech in December, I still don’t understand if the new website version is available to withdraw my money or not.
Thanks.
As far as I know the gig is up. Sorry for your loss.
Mike Kiefer – you destroyed so many lives. Keep looking over your shoulder.