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ELI5 Was Usi-Tech a Ponzi scheme?

Usi-Tech was a Dubai-based cryptocurrency platform that is surrounded by controversy and is, by some, considered a Ponzi scheme.

Starting with the State of Texas, several US and foreign jurisdictions prohibited Usi-Tech from operating within their territory.

The company's last tweet was posted in January of 2018 ...

... and their Instagram account is also still alive, although their latest post was on December 13, 2017.

The domain name usitech-int.com was not responding at the time of this writing.

Ponzi Scheme?

In May of 2019, Engadget's Benjamin Plackett published a piece titled "The Bitcoin ponzi that won't go away"

According to Plackett, Usi Tech was not only a Ponzi scheme, but continued to operate under different names even after the initial ban by authorities. Two of these names are Eyeline Tech and later WealthBoss.

Clients claim to have lost their entire life savings on the Usi Tech platform.

High Yield Caution

We recommend you take any investment that promises more than 3% per month with suspicion.

If you monitor the financial markets you'll know that US Treasury yields are lower than 3% per year. Treasuries are a very safe and conservative investment instrument, but they serve as a reference for a bottom line yield. Any investment that promises one year of Treasury yield per week, or sometimes even less, is very likely to be a scam.

Usi Tech customers were initially promised 1% per day, with a minimum period of 140 days. This is an outrageous yield that no legit financial instrument is able to deliver.

At the time of this writing former Usi Tech customers had not yet recovered any part of their losses.

Links

USI Tech entry on Wikipedia

Bitcoin Promoter USI-Tech Hit With Emergency Order

Cries of scam arise as once high-flying firms fail to deliver on cryptocurrency

"I earn money while I sleep" claims promoter of Bitcoin investment spin-off called USI-Tech

Consumer alert: USI-TECH Ltd.

New Zealand’s FMA Blacklists Trading Software Provider USI-Tech

ENTITIES NOT AUTHORISED BY CNMV (“BOILER ROOMS”)

Do Not Invest with USI-TECH Limited

Victims of USI-Tech crypto currency scam furious at lack of action by authorities

About the Author
Published by Gal Crypto - Geek crypto Gal stacking sats to get more tats! Information security enthusast, cryptocurrency early adopter and passionate about decentralized finance + fintechs. Front-end developer (Angular, PHP, React) and weekend skater. Learn More About Us