SEC warns public vs investing in Glass Coin, Vaultrade; says schemes have characteristics of Ponzi scheme
- 王林Original
- 2024-08-22 03:39:10925browse
THE SECURITIES and Exchange Commission (SEC) cautioned the public against investing in Glass Coin and Vaultrade, as neither is registered to solicit investments.
The Securities and Exchange Commission (SEC) has warned the public against investing in Glass Coin and Vaultrade, as neither entity is registered to solicit investments.
In separate advisories posted on its website on Friday, the SEC said that Glass Coin and Vaultrade are not authorized to solicit, accept, or take investments from the public.
Glass Coin is said to be a trust fund company that claims to be an expert in crypto asset management. The entity also claims that investors only need to invest in their “smart contracts” to earn money.
The minimum investment is P600, with a daily earning of P66 and a total revenue of P1,980 after 30 days, while the maximum investment is P200,000, with a daily earning of P6,666 and a total revenue of P199,980 after 30 days.
Investors could also earn a maximum of P3,650 for inviting others to join, and a P10,000 daily cash reward for following the entity’s Telegram channel.
Meanwhile, Vaultrade is said to be enticing the public to invest money with a promise of high profits. The entity reportedly offers two plans that will earn 60% and 140% in just 10 to 200 days.
The entity also promises a 5% referral bonus and another 5% whenever the new investors reinvest their earnings.
According to the corporate regulator, the schemes of the two entities have characteristics of a Ponzi scheme, where money from new investors is used to pay fake profits to prior investors. This 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 investment contracts using the 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 engaged in this business or scheme,” the SEC said.
The SEC also warned that individuals acting as salesmen, brokers, dealers, agents, or enablers for the two entities could face a maximum fine of P5 million, 21 years of imprisonment, or both, under the Securities Regulation Code. — Revin Mikhael D. Ochave
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