SEC issues advisory on Cryptostakers / Crypto-Stakers.com
The Securities and Exchance Commission or SEC has just announced that Cryptostakers or Crypto-Stakers.com is enticing the public to invest with a minimum amount of PHP 1,000 with a promise of 8% daily payout for 25 days or 100% return of investment in 25 days. This is in lieu of the Commissions announcement that Cryptostakers is operating 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).
Furthermore, the scheme employed by Cryptostakers 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 a Ponzi Scheme, which is fraudulent and unsustainable is not a registrable security. The Commission will not issue a License to Sell Securities to the Public to persons or entities that are engaged in this kind of business or scheme.
SEC warns that those who invite or recruit other people to join or invest in this venture or offer investment contracts or securities to the public may be held criminally liable under Section 28 of the SRC penalized with a maximum fine of PHP 5,000,000 or imprisonment of 21 years or both under Section 73 of the SRC (SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014).
In dealing with these unregistered entities, the Commission reiterates its Advisory entitled: “Dealing with Non-Registered Foreign Entities Organizations and Corporations”. In view thereof, the public is further advised not to invest or to stop investing in any investment scheme being offered by the aforesaid entities/individuals.
Should you have any information regarding the operation of the subject, you may call the Enforcement and Investor Protection Department at 8818-6047 or have the report sent at [email protected]