Texas, U.S. ordered to end bitcoin investment company

nBankruptcy comment: Texas State Securities Board of Texas securities regulator to stop an emergency sale of bitcoin mining and trading software company USI-Tech Limited. Because the company allegedly used various channels to sell investment contracts, claiming high and stable returns, and encouraging commissions through referrals. Violated the state securities registration standards and risk disclosure requirements.n
nTranslation: Annie_Xun
Texas regulators have made an emergency termination order to stop a company that may illegally market Bitcoin mining investment products.n
Texas State Securities Board Texas State Securities Board said in a statement disclosed that Dubai-based USI-Tech Limited has taken action. The company is trying to sell investment deals in “a dozen Texas cities” using ads on social media videos, dedicated websites, Craigslist and more. The company has two agents in the United States, one is Clifford Thomas in Maryland and the other is Michael Rivera in California.n
Based on what LinkedIn released in April this year, USI’s focus is on selling bitcoin mining and trading software. The content includes how many prospective participants may receive commissions based on the number of referrals.n
The Securities Board said the company claims to provide a steady daily return of similar structure to high-yielding investment plans that claim stable yields. And it is reported that the promotional content encourages potential investors to find other people who can buy, from which to obtain a “referral fee.”n
nThe agency’s website claims the value of the mining investment comes from the non-exclusive interest of USI-Tech in a series of bitcoin mining contracts, which they promised a daily return of 1% .USI-Tech’s website said its Bitcoin platform ‘is stable every year Up to 150% of daily returns. “Revenue does not depend on Bitcoin value.”n
nThe Securities Board statement said the names mentioned in the termination order violated the Texas Instruments registration standards and did not disclose the risks involved in bitcoin mining.n
n”In addition to violating registration requirements, USI-Tech and its sales agents violate the State Securities Board regulations and are not disclosing to investors information that makes informed investment decisions.”n

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