Texas intends to suspend the USI-Tech Limited

Bitcoin investment firm from Dubai is suspected in illegal promotion of bitcoin investment products
22 December 2017   1309

Texas' financial watchdog have obtained a court order to suspend the company, which is accused of illegal promotion of bitcoin investment products in the state, reports CoinDesk.

According to the report, the Securities Board of the State of Texas revealed that the USI-Tech Limited, based in Dubai, sells investment contracts on the territory of "dozens of Texas cities" through social networks, websites and advertising on various sites, including Craigslist. Also two representatives of the company in the US are named: Clifford Thomas from Maryland and Michael Rivera from California.

Judging by the presentation, USI specializes in the sale of software and equipment for mining and trading. The document also provides the stated statistics of how many potential investors will be able to earn on commissions depending on the number of "referrals".

According to the Texas regulator, the company promises a stable daily profit, reminiscent of high-yield investment plans. Also, the firm encourages potential investors to agitate to invest other people's money in order to profit from it.

The agents' websites claim the mining investment 'derives its value from [USI-Tech's] non-exclusive interest in a series of bitcoin mining contracts.' They promise a daily return of 1%. The USI-Tech website says its bitcoin platform “consistently provides returns of up to 150% per year." The returns do not depend on the value of bitcoin, according to the company. In addition to violating registration requirements, USI-Tech and the sales agents are violating State Securities Board rules by failing to disclose information investors would need to make an informed decision about whether to invest.

Securities Board 

The persons indicated in the court order are accused of violating the standards for registering securities of the state of Texas and failing to provide proper information about the risks associated with the mining of bitcoin.

Santander to Deny XRP Token Usage Info

It turned out that bank uses xCurrent in One Pay FX instead of XRP token for international payments, as it stated earlier
25 March 2019   71

Santander, a large Spanish bank, in its Twitter spread incorrect information about cooperation with Ripple.

And although the majority of cryptocurrency holders reacted positively to the statement of Santander, some of them drew attention to the fact that this news had no effect on the growth of XRP trading volume.

It soon became clear that the bank provided incorrect information.

xCurrent allows Ripple customers to make payments using Fiat as well as digital currencies. A similar product, the operations in which are carried out using XRP cryptocurrency, is called xRapid.

Despite the official apology, some commentators suspected the bank of manipulating the market.