Business

SEC warns against cryptocurrency scams

The Securities and Exchange Commission has warned the public anew against certain groups that ride on cryptocurrency to peddle illegal investment schemes.

In separate advisories, the SEC said IXTRADE, Learn and Earn Online, 247 Cryptotrading FX, ExchangeSTock, Binary Options Trading and Wolves Options have no license to offer securities to the public.

Under IXTRADE’s scheme, for every P500 to P20,000 investment, investors shall earn 150% plus a referral bonus of 20% after 12 days.

The earnings allegedly come from trading in the forex and cryptocurrency markets.

IXTRADE is not even registered as a corporation nor as a crowd funding intermediary, the SEC said.

Meanwhile, Learn and Earn Online operates from Kenya and appears to be acting as broker of 247 Cryptotrading FX, Binary Options and Wolves Options which are all said to be based in United Kingdom.

They are offering too good to be true investment opportunities ranging from 18% to 1,000% income per week which are similar to a Ponzi scheme where returns to early investors are likely to be paid out from the investments of new investors and not out of the companies’ profits.

Learn and Earn Online offers free seminars and tutorials on how to invest in crypto currencies and foreign exchange online.

These entities, the SEC said, are not authorized to solicit investments from the public nor are the included among the registered banks, exchanges or companies engaged in digital assets with the Bangko Sentral ng Pilipinas.

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