On Wednesday, the Securities and Exchange Commission (SEC), which regulates the country’s markets, issued an advisory warning the public to stay away from Skyline Crypto and Dry Goods Trading.
The advisory advised the public that individuals who claim to represent Skyline Crypto Trading are not authorized to solicit investments from citizens.
The impersonators provide investment opportunities online through Facebook Messenger group conversations for Php 1,000.00 to Php 1,000,000.00 ($17 to $17,000), per the Philippines’ regulator.
Furthermore, they guarantee a return of 35% of their investment within a 15-day timeframe.
“The organization provides its investors with a “Lock-In Program” that guarantees smartphones and a variety of motor vehicles as “rewards.”
The regulator’s database indicates that the entity is “not registered” and has no license to sell securities.
“It lacks the requisite license to issue investment contracts and other forms of securities as defined in Section 3 of the Securities Regulation Code (SRC) or to solicit, accept, or take investments from the public.”
Potential Ponzi Scheme: SEC of the Philippines
Skyline Crypto is classified as a Ponzi scheme by the Securities and Exchange Commission of the Philippines (SEC). This investment scheme generates an illusion of profitability by initially compensating investors.
“The public is advised to refrain from investing in any investment scheme offered by Skyline Crypto and Dry Goods Trading, as well as any other entities with similar schemes.”
Furthermore, individuals participating in the scheme under the entity name will be subject to criminal penalties for violating the Financial Products and Services Consumer Protection Act (FCPA).
The warning stated that the perpetrators would be subject to a maximum fine of Php 5,000,000 ($85000 approximately) or imprisonment for 21 years, or both.
Investors, particularly those unfamiliar with the technology, are experiencing financial losses due to the proliferation of cryptocurrency schemes in the Philippines.
The Philippine Securities and Exchange Commission (SEC) and its counterpart in the United States (SEC) collaborated last year to resolve the growing problem of cryptocurrency fraud. The collaboration underscored the severity of a burgeoning issue in crypto-related fraud.
Furthermore, the Philippine National Police’s anti-cybercrime unit warned the public about the potential hazards associated with cryptocurrency gaming schemes. This includes the “play-to-earn” gaming model that the Ethereum blockchain-based metaverse game Axie Infinity has implemented.
