The SEC is telling the traders to stay far away from a company that has been allegedly endorsed by Finance Secretary Carlos G. Dominguez III.
The firm also utilizes what seemed to be fake endorsements from celebrities, although the company has been unregulated and is not in line with the present financial legislation.
SEC is in the quest to Crackdown Phony Crypto Firms
The enterprise that SEC refers to is known as “Bitcoin Digital.” Agents claim that the firm didn’t have a regulatory license. That is why it is not allowed to sell securities or even garner investments from public members, but it is precisely what appears to be doing on the website.
SEC released a statement elaborating:
“Based on our records, Bitcoin Digital is not registered with the commission and is not authorized to solicit, accept or take investment or placements from the public nor to issue investment contracts and other forms of securities. Moreover, Bitcoin Digital is likewise not included among the registered banks, exchanges or companies engaged in digital assets with the Bangko Sentral ng Pilipinas.”
The government agency has been coming down hard on crypto companies in the last few years. Purportedly, many firms haven’t registered their tokens when selling them through ICOs either out of ignorance or willful intent. Still, the SEC was not treating the companies any mercy and are doling out the penalties to whoever fits the bill.
One recent case involved was Kik. The company has been under fire by SEC since 2017, and then finally agreed to settle for a $5M penalty. Although Kik claimed that it doesn’t agree with the SEC’s sentiment, it then chose to settle in that it would allow it to continue its operations uninterrupted.
Bitcoin Digital allegedly features phony endorsements from the Philippines’ Pres. Rodrigo R. Duterte. The SEC has warned that this endorsement wasn’t real, and investors should walk away and avoid the firm at all costs.
Major Red Flag Spotted
Continuing with the statement to the investor community, the SEC elaborated:
It is a huge red flag for any investing venture. Granted that those in charge didn’t warn of risks and promise particular returns, they are likely not telling the truth. The fact that crypto is highly volatile, and it is possible to lose quite a bit of money in the investing process, investors need to be aware of it before stepping into the financial game.