What kind of computer and operating system do you use? Have you tried different USB ports? If you have USB 3 support, try connecting the device to any of the USB 2 ports, please.
In Cubase, do you have the same distortion no matter which buffer size is selected for the ASIO driver or does it get worse with lower latencies?
It might be the best solution to contact the US support directly via www.steinberg.net → Support → Contact