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Philippines: SEC red flags bitcoin firm
MANILA, Philippines — The Securities and Exchange Commission (SEC) has warned against Bitcoin Revolution, which presents itself as a cryptocurrency trading program supposedly endorsed by government officials, businessmen and celebrities.
In a June 16 advisory, the SEC urged the public to stop investing in schemes offered by Bitcoin Revolution or any other entities engaged in digital asset trading and promising unbelievably high rates of return with little or no risk.
Bitcoin Revolution promises investors as much as $1,000 from a minimum investment of $250 within a day or a 300 percent return on investment per day.
The scheme involves the offering and sale of securities in the form of investment contracts.
SEC said the investment contracts must have been duly registered with the SEC, while Bitcoin Revolution and its agents must secure the corresponding license to offer securities for sale to the public as required under the Securities Regulation Code.
“Aside from the missing registration and licenses, the quick and unrealistically high return promised by Bitcoin Revolution presents a red flag for a Ponzi scheme, an investment scam where investors are paid using funds contributed by the succeeding investors,” the SEC said.
Bitcoin Revolution remains unregistered with and unauthorized to solicit and accept investments or placements from the public.
The SEC has repeatedly warned all individuals and groups engaged in fraud of the strict penalties awaiting them for violating the laws, rules and regulations it enforces.
“Those who act as salesmen, brokers, dealers or agents of fraudulent investment schemes, for instance, may face a maximum fine of P5 million or imprisonment of 21 years or both under the Securities Regulation Code,” the SEC said.
Source: https://www.philstar.com/business/2020/06/18/2021596/sec-red-flags-bitcoin-firm