The Philippines Securities and Exchange Commission or SEC recently uncovered about five entities running investment-solicitation businesses in the country, which involved crypto get-rich-quick schemes. Residents have also been warned to avoid investments that promise massive returns within a short period.
The entities have no formal approval
According to the SEC document, the five entities are Captcha Philippines, Xtreme, Won Project, Fil-Invest, and CryptoInvestWith.Us (CIW.U). Their operations, which involved crypto get-rich-quick activities, were all conducted in the country without any formal recognition with appropriate authorities.
The entities had no registered securities, and they are not a registered corporation, per the report. Also, they have no secondary licenses that should enable them to solicit and obtain investments from the residents, which is required by the Securities Regulation Code of the country.
Xtreme claims that it is a registered corporation; however, the regulator mentioned that it is a different thing altogether. The certificate of incorporation is not an approval or permission to solicit and receive public funds for investment’s sake.
Crypto get-rich-quick incentive
As the Philippines SEC revealed in the document, CIW.U had promised one percent for every Bitcoin (BTC) deposit after six days, which would later increase to 20 percent every week. In a similar move, Won Project promised investors 1.5 percent profit daily for 100 days when the Invest from $100 – $20,000 on their crypto dubbed WONCOIN.
Still, on the WONCOIN crypto get-rich-quick scheme, the operators also promised investors luxurious incentives, such as cars and the opportunity to travel to other countries. Won Project also pledged to pay investors a commission whenever the people purchase their cryptocurrency through referrals.
While the other companies touted a similar crypto get-rich-quick scheme, the regulator has warned that such operators may be liable to criminal charges, and they could be charged up to five million Philippine Peso ($99,029) or face 21 years imprisonment.