By Shiela Bertillo
The Securities and Exchange Commission (SEC) released an advisory to the public to be cautious when transacting with people soliciting investments for and on behalf of crypto investing entity CRYPTOSTAKERS or CRYPSTO-STAKERS.COM. SEC stressed that CRYPTOSTAKERS doesn’t have the license and authority from the Commission to solicit investments from the public.
“Based on the Commission’s database, CRYPTOSTAKERS/CRYPTO-STAKERS.COM is not registered as a corporation or partnership and operates without the necessary license and/or authority to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC),” the Commission wrote in the advisory.
“Those who act as salesmen, brokers, dealers or agents of CRYPTOSTAKERS or CRYPTO-STAKERS.COM in selling or convincing people to invest in the investment scheme being offered by the said entity including soliciting investments or recruiting investors through the internet may be held criminally liable under Section 28 of the SRC and penalized with a maximum fine of Five Million Pesos (Php5,000,000.00) or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014),” the SEC said.
According to the reports received by the SEC and as posted on the Facebook Page of CRYPTOSTAKERS, the entity is enticing the public to invest with a minimum amount of One Thousand Pesos (Php1,000.00) with a promise of an 8% daily payout for 25 days or 100% return of investment in 25 days. In addition, an investor can also earn through direct referral of investors.
“Further, the scheme employed by CRYPTOSTAKERS / CRYPTO-STAKERS.COM shows indication of a possible “Ponzi Scheme” where monies from new investors are used in paying “fake profits” to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors. The offering and selling of securities in the form of investment contracts using the “Ponzi Scheme” which is fraudulent and unsustainable, is NOT a registrable security,” the SEC stated.
Moreover, the SEC emphasized that it will not issue a license to sell securities to the public to persons or entities that are engaged in a ponzi scheme.
“In view thereof, the public is hereby advised to STOP INVESTING in the investment scheme being offered by CRYPTOSTAKERS / CRYPTO -STAKERS.COM and its representatives,” the Commission added.
Accordingly, the SEC warns “all unscrupulous individuals and/or entities that strict penalties are imposed for violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulations enforced by the Commission.
Recently, the SEC also flagged 2 entities leveraging on the emerging market of cryptocurrency and play-to-earn games.
The public were warned against transacting with individual or group of persons soliciting investments for and on behalf of crypto trading entity Crypto Asset. The SEC stressed that it is also not registered as a Virtual Asset Service Provider (VASP) with the Bangko Sentral ng Pilipinas (BSP) and does not have a corresponding Certificate of Authority as a Money Service Business. (Read more: SEC Issues Advisory Against ‘Crypto Asset’)
The Commission also issued an advisory against BCPay Financial Technology Inc (BCPAY Inc.) which is doing business under the name OUTRACE “Play to Earn” and is soliciting investments in the country without license and authority from the SEC. (Read more: SEC Issues Advisory Against “Outrace Play-to-earn”)
This article is published on BitPinas: SEC Warns Public Against Investment Scheme “CRYPTOSTAKERS”