MANILA, Philippines — On Tuesday, Executive Secretary Salvador Medialdea issued a public warning about a…
SEC issues a public warning on BitdefiHub
BitdefiHub Advertising, which claims to double an investor’s money within ten days, has received a warning from the Securities and Exchange Commission (SEC) not to invest.
The public offering of BitdefiHub without obtaining the required SEC registration, together with the related order of registration of securities and certificate of permit to offer and sell securities, were identified by the commission in an advisory dated October 18.
According to statements on its Facebook page, BitdefiHub has been luring the public to deposit a minimum of PHP300 in exchange for daily rewards of 20%.
Through the Bitdefi platform, investors who park their funds within a 10-day period stand to quadruple their winnings.
For instance, investors who put up PHP 500 are guaranteed PHP 100 in daily earnings and PHP 1,000 after 10 days. A PHP3 million investment will also return PHP600,000 after one day and might double to PHP6 million after ten.
Investors could also receive a registration incentive of PHP50 and a referral bonus of 25%. Through the fintech payment platform GCash, investments are processed.
According to the SEC Enforcement and Investor Protection Department, the scheme entails the sale and marketing of securities to the public in the form of investment contracts, whereby a person puts his money in a joint venture and is led to expect returns solely from the efforts of others (EIPD).
Without a properly filed and approved registration statement with the SEC, securities may not be sold, offered for sale, or distributed within the Philippines, according to Section 8 of Republic Act No. 8799, or The Securities Regulation Code (SRC).
According to records, Mark Guevarra Mercado, the proprietor of BitdefiHub, has received a certificate of business name registration from the Department of Trade and Industry.
It is not, however, listed with the commission as a corporation or partnership. As a result, it is unable to seek for the requisite license that would allow it to ask the public for investments.
In compliance with SEC Memorandum Circular No. 14, Series of 2019 or the Rules and Regulations Governing Crowdfunding, the group is also not registered as an intermediary or financing platform for crowdfunding.
In light of this, the public is advised not to participate in or stop participating in any investment scheme being offered by BITDEFI and to use caution when interacting with any people or groups that are soliciting investments or finding investors for and on behalf of BITDEFI, according to the EIPD.
According to the EIPD, anyone who represents BitdefiHub as a salesperson, broker, dealer, or agent, or who makes such a representation, may be charged with a crime under Section 28 of the SRC and punished with a maximum fine of PHP5 million, a maximum sentence of 21 years in prison, or both under Section 73 of the SRC.
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