SEC tells public not to invest in BitdefiHub’s get-rich-quick scheme

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The Securities and Exchange Commission (SEC) has warned the public to invest in a new get-rich-quick scheme perpetuated by a company called BitdefiHub Advertising.

The SEC said in a notice that BitdefiHub was soliciting investment from the public without obtaining the necessary licenses and permits.

The company’s promise of big returns of up to 20% per day also raises red flags, the corporate regulator has warned.

“In view of this, the public is advised not to invest or stop investing in any investment program offered by BITDEFI and to exercise caution in its dealings with any individual or group of people seeking investment. or recruiting investors for and on behalf of BITDEFI,” the SEC said. Investor Protection and Enforcement Department, or SIFT, said in a notice.

According to the SEC, BitdefiHub enticed the public to invest a minimum of P300 in exchange for 20% daily earnings. This was based on advertisements running on the company’s Facebook page.

“Investors who put their money in within 10 days can double their profits through the Bitdefi platform,” the SEC added.

“For example, investors who deposit P500 are promised income worth P100 per day and P1,000 after 10 days. be doubled to 6 million pesos after 10 days,” he explained.

The company also offers a 25% referral bonus and a P50 sign-up bonus. Investments are made through the fintech payment platform GCash.

The SEC said the scheme violated Section 8 of Republic Act No. 8799, or the Code of Securities Regulation, which states that securities must not be sold or offered for sale or distribution in the Philippines, without a registration statement duly filed and approved by the SECOND.

“Records show that BitdefiHub owner Mark Guevarra Mercado received a business name registration certificate from the Department of Commerce and Industry,” the SEC said.

“However, it is not registered as a company or partnership with the Commission. As a result, he cannot apply for the necessary license that would allow him to solicit investment from the public,” he added.

The group is also not registered as a crowdfunding intermediary or funding portal, pursuant to SEC Circular Memorandum No. 14, Series of 2019 or rules and regulations governing crowdfunding.

The SIFT further warned that those who act as sellers, brokers, resellers or agents or purport to act as such on behalf of BitdefiHub to sell or persuade people to invest may be prosecuted and held criminally liable under section 28 of the RSC, and punishable by a fine of up to 5 million pula or imprisonment for 21 years or both under section 73 of the RSC.

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