The Philippines Securities and Exchange Commission (SEC) has issued public advisory warning citizens against investing in companies selling illegal investment products.
The advisory came from the Enforcement and Investor Protection Department against Sophia Fransico Holding OPC, Financial Consultancy Services Sophia-Francisco Trading, and Sophia Francisco Trading, all operating under the name, Cryptogix.
According to information from the SEC, Cryptogix leveraged social media to offer investments to the public while claiming to provide 100% returns in as little as 90 days. An additional 5% commission will be given as a referral bonus to persons who “entice” new investors to sink funds in the scheme.
The SEC says that the product offered by Cryptogix qualifies as an investment product and should be registered with the commission. It went on to urge members of the public not to invest in the offering from Cryptogix as it contravenes the extant securities laws of the Philippines.
“The records of the Commission show that CRYPTOGIX is not registered either as a corporation or as a partnership. Further, CRYPTOGIX is NOT AUTHORIZED to solicit investments from the public since it has not secured prior registration and/or license from the Commission as prescribed under Sections 8 and 28 of the SRC,” the warning read.
A similar warning was also issued against Crypto Marketers/Crypto Marketers Worldwide, entities actively engaged in luring the public to invest in a scheme offering returns of 2% each day. Investors in the scheme are expected to deposit USDT to a wallet, but the SEC says that the firm operates illegally.
The SEC goes on to warn that individuals acting as salesmen of the firm in “selling and convincing people to invest in the investment scheme” may face criminal liability with the possibility of up to 21 years in federal prison.
“Also those who invite or recruit others to join in such a venture, or offer investment contracts or securities to the public, may incur criminal liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the case of Securities and Exchange vs Oudine Santos,” said the SEC.
Securities watchdogs are turning up the heat
Agencies in charge of the capital markets around the world are increasing their tempo in monitoring the digital assets agency. There is a heated debate in the ecosystem over the status of digital currencies, as their issuance may give them the status of securities if the conventional definition is applied.
This debate forms the bedrock of the cases of the U.S. SEC against Ripple Labs over XRP tokens since 2020. The case has seen numerous twists and turns, but as it enters the endgame, enthusiasts watch with bated breaths for the courts to issue a decision.
“We allege that Ripple, Larsen, and Garlinhouse failed to register their ongoing offer and sale of billions of XRP to retail investors which deprived purchasers of adequate disclosures about XRP and Ripple’s business and other important long-standing protections that are fundamental to our robust public market system,” Director of the SEC’s Enforcement Division, Stephanie Avakian stated.
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