USI Tech and BitConnect issued Cease and Desist orders by Texas- and they DID!
The State of Texas Securities board does not tolerate anything that even looks like a Ponzi Scheme.
A Ponzi scheme is named for a 1920’s Swindler named Charles Ponzi.
Charles Ponzi was the infamous Italian criminal who scammed investors out of an estimated $7m in the early 1900s by passing on money from new investors to existing ones – while presenting the scam as a sustainable investment.
He did not invent the “Ponzi scheme” but the magnitude of his ploy led to his name being put before such scams. – read more at Telegraph.Uk
The Lonestar State has a strong reputation for being responsible for major shutdowns in online marketing arena especially in the cryptocurrency genre.
In a Pyramid Scheme, the original investor is expected to recruit other investors in order for the original investor to “move up” in the organization. The original investor is paid for each new investor that he or she recruits and receives a percentage of the money brought in by each new investor.
In a Ponzi Scheme, the initial investors’ dividends are paid from money drawn in from newer investors who, in turn, are paid from funds that are taken from even newer investors. Unlike the pyramid scheme mentioned above, a Ponzi Scheme will eventually “implode” or “collapse under its own weight” if enough new investors cannot be recruited to pay the older investors. – read more about Texas Criminal Laws and Ponzi Schemes
Texas has been targetting the Crypto community for several years. In 2013 Bitcoin Savings and Trust was shut down and the 30 year old man running the operation was charged with Securities Act of 1933, the Securities Exchange Act of 1934 and the Exchange Act Rule.
The case, filed in U.S. District Court for the Eastern District of Texas, marks one of the first criminal prosecutions related to Bitcoin, a virtual currency launched in 2009. Bitcoin is still a very niche payment system, but it has gained steady interest, in part buoyed by wild swings in its price that garnered much media attention.
Various investment schemes promoted on the popular Bitcoin Forum over the years have been viewed with suspicion. Bitcoin transactions are irreversible, similar to using cash, and investors could be out-of-pocket if their funds disappear. Legal recourse against suspected bad actors may be difficult or impossible. – Read More at PC World
Recently, a Cease and desist order was issued to USI Tech by the State of Texas, subsequently, USI Tech has severed its relationship with all US and Canadian customers.
In an attempt to stop promotion of the USI-Tech Ponzi scheme throughout Texas, the Securities
Commissioner issued an emergency cease and desist on December 20th.
The emergency cease and desist targets two US USI-Tech promoters, Clifford Thomas and Michael Rivera (right).
A similar order was sent to a similar company, BitConnect.
Basically what the letter says is that the activities of Bitconnect are potentially licencible for registration in Texas.
Obviously, at the moment, Bitconnect doesn’t have such a licence in Texas. So what Bitconnect does is what any reasonable/transparentcompany would do – they don’t allow lending (“at this time”) in the State of Texas. – Read more on Redditt
Many people were screaming that it was a scam from the early days but, one, in particular, drew more attention than others particularly because his own operation had been shut down in the same manner previously.
In an interesting turn of events, Charles Scoville of Traffic Monsoon infamy has decided to try his hand at scam busting. His target is the USI-Tech scam. Let’s take a look at his efforts. It is always interesting to see a new scam buster at work.
read more at : Charles Scoville vs USI-Tech Scam
There are a lot of “I told ya Sos” going on around the community right now, mainly because people are caught up in the get rich quickly or by any means necessary mentality. It doesn’t exist though, the instant wealth thing, it’s imaginary.
The threat of the shutdown was there for months before the ax came down.
They have a target set on BitConnect as well
The Securities Commissioner found that the BitConnect investments are securities, but were not registered as required by the Texas Securities Act and State Securities Board Rules and Regulations. In addition, the company is not registered to sell securities in Texas.
Under state law, BitConnect can contest the order at the State Office of Administrative Hearings.
Texas was the first state to issue an administrative order on cryptocurrency investments. The Securities Commissioner on Dec. 20 entered an Emergency Cease and Desist Order against USI-Tech Limited, a Dubai-based firm selling investments tied to Bitcoin mining. – BitConnect Ponzi Ordered to Cease
When a US resident logs in to their BitConnect Dashboard, they will see a page that looks like this
It seems that it won’t be long until BitConnect follows the lead of USI tech
It is sometimes difficult to determine if your investment opportunity is legitimate or is, in fact, a Ponzi Scheme but, if you are going to invest your money, PLEASE do your due diligence
Every state and the federal government have laws making Ponzi schemes illegal. If you are convicted of promoting a Ponzi scheme in Texas, you could do time in a state jail and end up with permanent record as a felony offender. It is important to bear in mind that some legitimate business ventures might appear to be similar to a Ponzi scheme without being illegal. The key to staying out of trouble is to know the difference. – read more about Texas Ponzi Laws
I can personally vouch for how easy it is to fall for the so-called ponzis. I have previously followed the rise and fall of several notable mlm greats like Charles Scoville. I was a member of Traffic Monsoon when they stopped US operations.
I really like a site called Eobot.com because I can exchange for Ripple XRP there. The latest news from their site isn’t looking great either and many people in the Bitcoin community think that the site is a total scam too.
There are legitimate investment opportunities available, they few and far between. The easiest way to invest in Bitcoin is to cruie over to coinbase and buy some. That simple. Buy and #HODL then hope for the best.
Cryptocurrencies are susceptible to cybersecurity breaches or hacks and the high volatility of such investments makes them unsuitable in sizable amounts for many investors, the note stated.
The Department of Finance also reminded investors to keep an eye out for common red flags of investment fraud, including unsolicited offers, unlicensed sellers and guarantees of high returns.
The state of Alaska has also released a statement urging the public to view cryptocurrency investments with caution. – read more at CoinDesk