Despite all the negative, the Texas State Securities Board is probably glad that they were right after having warned consumers that they should think twice before investing in Dubai-based USI-Tech-Limited. This week, days before Christmas, the Board told the public that it had officially finalized the steps in taking action against the firm.
On December 20, Texas regulators reported that the firm, USI-Tech-Limited, was trying to sell for-profit investment contracts through the means of social media, such as videos and websites like Craigslist. So not only does this violate a number of rules, it also means Youtube doesn’t just consist of cute cat videos or TedTalks anymore, which I think is kind of unfortunate.
The company has uploaded a presentation on LinkedIn detailing its focus and goals for USI-Tech-Limited’s future, and while it primarily focuses on developing automated trading software, a cease and desist order is now going to have to take priority for the time being. The presentation also noted that the company’s market of choice is the forex market, which is essentially a market that allows individuals to purchase, exchange, and sell currencies. It’s also not controlled by one single market exchange, which I find pretty interesting.
Located in Austin, Texas, the State Securities Board takes pride in enforcing the Texas Securities Act, so it’s not a total surprise that members decided to take action against the firm, considering those named in the order were accused of breaking certain securities registration rules.
Generally, the Texas State Securities Board will just update rules or incorporate new ones at different intervals, but not this time around. Regulators mentioned that the Dubai firm claims that its platform for the Bitcoin always brings in returns of roughly 150% per year.
By now most people know that Bitcoin, which opened Thursday’s trading session at $16,454.72 (a significant drop from last week when it hit an all-time high), is the hottest thing of 2017, but with the good comes the bad, and selling investment contracts in order to mine bitcoin is a very serious allegation against USI-Tech-Limited.
Right now the Dubai-based firm has yet to be reached to comment on the order, but if you check back in with us later, we’ll hopefully have more details on how the situation is playing out.
Featured Image: twitter