Through a newsletter issued on February 24th 2018 Usi-Tech, the well-known platform that allows through the purchase of Bitcoin packages a certain daily yield 5 days out of 7, announced the interruption of Bitcoin packages due to an incorrect conduct of some promoters (multiple registrations and consequent earnings on commissions).
Here is the fundamental passage in which the decision is made by the company:
"considering the aforementioned fraudulent behavior—and in order to spare you a loss, we are unfortunately forced to immediately discontinue the BTC Packages in their current form."
The press release continues by focusing on the legitimacy of the decision, based on the initial acceptance during the registration phase by the customers of the Usi-Tech terms and conditions:
"USI-TECH expressly reserves the right and ability to discontinue service at any time without prior notice"
So far, bad news for Usi-Tech customers, however, the newsletter continues and expresses the willingness of Usi-tech to avoid economic losses to its customers. Therefore, for all customers who have withdrawn 100% or more of the sum deposited, all packages are considered interrupted. For customers instead who have withdrawn less than 100% of the investment made, and therefore at a loss, the return of capital will be guaranteed thanks to the achievement of 100% on the same packages previously purchased. The sustainability of the platform will be guaranteed, continues Usi-Tech, from the mining of Bitcoin and Ethereum.
What is reported is the extract of the newsletter, which you will find in full at the end of the post, sent by Usi-tech to all its customers, certainly in the following days we will know more because it is a news intended to make a lot of discussion.
This is the full text of the Usi-Tech newsletter
Dear Partner, the countdown is underway for the beginning of all previously announced necessary measures.
In just a few days we will be able to resume regular operations with a coordinated, sustainable approach.
You have purchased (a) BTC Package(s) from us and utilize the services offered by our company.
We regret, however, that in the last few weeks we have determined that some of our company’s distributors have behaved in a manner that is seriously harmful to our business.
Based on this behavior we have begun a detailed review of our entire system over the past few weeks.
The exact findings are now available. A large number of our distribution partners have illegally and in violation of their contracts received additional commissions and monetary claims.
These considerable, fraudulent violations result mainly from unlawful double payments for partner activities via fabricated REBUY, commission payouts via fake multiple registrations, and illegal advertising for the acquisition of benefits.
As a result of this misconduct, the viability and profitability of the active BTC Packages in their current form are no longer feasible.
In order to not excessively jeopardize your costs and expenses for the BTC Packages— considering the aforementioned fraudulent behavior—and in order to spare you a loss, we are unfortunately forced to immediately discontinue the BTC Packages in their current form.
Though we deeply regret doing so, we hereby terminate the contractual relationship through your BTC Package immediately by extraordinary or ordinary termination.
In regard to the legality of the termination of the above mentioned BTC Packages without notice, we refer to our terms and conditions, which you have accepted, in which it states verbatim:
“USI-TECH expressly reserves the right and ability to discontinue
service at any time without prior notice.”
We now make use of this right and further refer to our terms and conditions, in which we expressly point out that we assume no warranty or guarantee that the user/client will achieve any profit through the BTC Packages. We also point out that there is always a significant risk of loss, even total loss, in this extremely speculative market.
Despite the notice of a risk of total loss in our terms and conditions, we strive not to assign a financial loss on the BTC Packages to ANY CLIENT. After the successful termination of all BTC Packages, we will undertake the following approach.
All clients who have withdrawn 100 percent or higher (due to payouts) of the deposited amount of their respective purchased BTC Packages are terminated immediately. Due to the termination of the contractual relationship, there will be no further recoveries or payments for this BTC Package.
Illustration of how the current BTC Package(s) will be reset or stay live until they have reached the break-even point of 100%
All clients who have withdrawn less than 100 percent of the original purchasing price of their BTC Packages will be granted future financial benefits, as demonstrated in the following illustration, so that these BTC-Packages can reach their original purchasing price.
Our goal is to avoid any financial loss for our clients.
Illustration of how the current BTC Packages will be paid until they have reached the break-even point of 100%
At the present moment, however, we cannot foresee how long it will take for us to attain cost recovery for all of our clients. We are working on a complete calculation of all active BTC Packages as compared with all corresponding withdrawals.
The determination of cost recovery for purchased BTC Packages will be based on the withdrawals of each respective client/distributor. This also applies to withdrawn commissions from distributor activity and financial donations for partners in the capacity of REBUY.
The resulting shortfall in relation to the respective deposits for all purchased BTC Packages will then be paid out according to a yet to be determined contribution plan.
We furthermore reserve the right to take legal action against those distributors who harmed our company in the previously described way.
The damages obtained from these distribution partners will be used to achieve the respective coverage of acquisition costs for all BTC Packages.
Please note that you are obligated to duly declare and pay tax on obtained commissions and revenues (even from the partner REBUY) to your relevant tax authority, as stipulated by current tax law. We assume that you tax compliant, and therefore only in the case of a revenue or charge dispute, e.g. from the partner REBUY, would we have to send a precautionary control report to the relevant tax office in order to absolve our company accordingly.
In conclusion, we would like to thank you for your trust in our company.
We very much regret the unfortunate recent development due to the behavior of many dubious distribution partners.
We are convinced that we will continue to attain financial success for you with our NEW BTC PACKAGES 2.0 in a newly modified and 100% transparent form (BTC Packages 2.0 will be directly linked to mining capacities and will receive the net earnings from them 7 days a week). It is however at least as important that, due to the new structure, a similar situation will not be able to arise.
In the next newsletter, we will announce all of the details about technical processing and the new BTC PACKAGE 2.0. All related functions will shortly thereafter be activated and go LIVE.
USI Tech
Management