The Securities and Exchange Commission told the public not to invest in cryptocurrency firms PayAsian Solutions and Coindero Holdings or Coin De Oro.
In separate notices, SEC said the PayAsian and Coindero are not authorized to solicit investments from the public. Both companies are enticing the public to invest with the promise of a hefty profit.
Coin De Oro promises a 5% return from investments made by their direct referrals.
Investors are also promised to earn 50% of the amount invested by direct referrals converted into Coin de Oro crypto currencies.
Coindeoro said cryptocurrency could be traded using its platform which can be accessed by investors using their personal accounts.
SEC said PayAsian is not registered either as a corporation or partnership. It promises a return based on two options offered under its compensation plan.
Under the buy, hold and earn option, investors are encouraged hold their PAYA coins for six months in order to receive 30% additional PAYA rewards. Another option is by recruiting other investors.
PayAsian also claims to have connections in Singapore.
“The public must be aware that some companies allegedly trading virtual currencies may be scams using the Ponzi schemes where money from new investors is used to pay fake “profits” to earlier investors,” the SEC said.