SEC of the Philippines urged to abandon investment in the crypto project Lele Gold Coin

The Philippine Securities and Exchange Commission (SEC) has warned investors against investing in the Lele Gold Coin cryptocurrency project, which offers unregistered securities.

In its warning, the agency mentioned Bit-Cryptorising Marketing Consultancy, BCR Rising Trade Inc.. and Lele Gold Farm operating under the same name Lele Gold Coin. The regulator claims that their creators were engaged in illegal attraction of investments from the local population through social networks. In particular, the organizers of Bit-Cryptorising Marketing Consultancy promised investors a payment of 120% of the deposit amount within 60 days. As for BCR Rising Trade, the firm has registered with the SEC but has not received an additional license to sell securities.

The SEC noted that in addition to not being registered with the agency, Lele Gold Farm operated like a pyramid scheme, using funds from new investors to pay out earlier contributors.. This could be disastrous if the number of new investors is reduced.. Therefore, the regulator recommended that local citizens refrain from participating in these projects, and called on their creators to stop advertising their services.. Otherwise, offenders face up to 21 years in prison.

“The offering and sale of securities in the form of investment contracts using a pyramid scheme is considered fraud. We will not issue a license to sell securities to individuals or entities that engage in such activities,” said the SEC of the Philippines.

In 2022, the Commission issued more than 80 warnings about companies that the regulator claims were illegally raising investments in unregistered securities.. Already at the beginning of this year, the SEC warned investors about the cryptocurrency startup Tether Pay, which guarantees high profits.