Three digital asset companies have received warnings from the Philippine Securities and Exchange Commission. The companies include GameLoot, PH-IGM, and Vertex Evo Trading. The Securities Commission pointed out that these firms had violated the securities laws in the country.
According to the SEC, GameLoot had offered investment products to the public with an outrageous return on investment (ROI) ranging from 50% to 150%, with a 10% bonus upon each referral. This was done without the necessary approval. The SEC likened their investment offers to a Ponzi scheme, with no proper repayment scheme but using the new investors’ money to pay the old ones.
The Commission has warned the public to beware of such products and has threatened the perpetrators with an impending sentence of 21 years imprisonment or a fine of five million pesos.
PH-IGM, similar to GameLoot, was instructed to stop offering investment packages involving digital assets to the public. The ROI was more alarming than GameLoot. The company promised a 1,000 percent increase in capital after two hundred days.
Vertex Evo, the last firm, was also accused of selling securities without a prior license from the SEC. The financial watchdog had warned Vertex Evo, saying:
“Based on the Commission’s database, the said entity is not registered with the Commission as a corporation, OPC, or a partnership. The entity likewise has not been issued by the Commission, any license or permit to sell or offer securities to the public or to conduct any activities regulated by the Commission,”
The Philippines ranks second in the world for global crypto adoption according to the Chainalysis Index report, and it recently concluded its Blockchain Week. The event was organized by thought leaders in the blockchain and digital industries to discuss opportunities and the growth of blockchain technology in the country.
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