The Securities and Exchange Commission (SEC) is telling traders to stay far away from a company that’s been allegedly endorsed by Finance Secretary Carlos G. Dominguez III. The firm is also utilizing what appear to be fake endorsements from celebrities, though the company is unregulated and is not in line with present financial legislation.
The SEC Continues Its Crackdown of Phony Crypto Firms
The enterprise the SEC is referring to is known simply as “Bitcoin Digital.” Agents claim that the firm does not have a regulatory license. Therefore, it is not allowed to sell securities or garner investments from members of the public, yet this is exactly what it appears to be doing through its website.
The SEC has released a statement explaining:
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 – which is designed to monitor and regulate the selling of securities – has been coming down hard on crypto companies over the last few years. Purportedly, many of these firms did not register their tokens when selling them through initial coin offerings (ICOs) either out of ignorance or willful intent, but the SEC is not treating companies with any mercy, and are doling out penalties to whomever they see fit.
One of the recent cases involved Kik, a new cryptocurrency enterprise that first issued its unique token about three years ago in 2017. The company has been under fire by the SEC since then, and finally agreed to settle for a $5 million penalty. While Kik claimed that it doesn’t agree with the sentiment of the SEC, it chose to settle in that doing so would allow it to continue its operations uninterrupted.
Bitcoin Digital is allegedly featuring phony endorsements from the Philippines’ president Rodrigo R. Duterte. The SEC warns that this endorsement is not real, and thus investors should walk away and avoid the firm at all costs.
High Profits? That’s a Major Red Flag
Continuing their statement to the investor community, the SEC explained:
The public is advised not to invest or to stop investing in any scheme offered by Bitcoin Digital that promises ridiculous rates of return with little or no risk.
This is a huge red flag for any investing venture. Granted those in charge do not warn of risks and promise specific returns, they are likely not telling the truth. The fact is that crypto remains highly volatile, and it’s possible to lose quite a bit of money during the investing process, and investors need to be fully aware of this before they step into the financial game.
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