PH SEC Advisory Against Bitcoin Revolution Scam

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April 2, 2020 – Another day, another scam. The SEC has recently warned the public about investing in the so-called Bitcoin Revolution Scam. The SEC said they found out that Bitcoin Revolution, which does business in Europe and Australia, is also soliciting investments in the Philippines. The SEC said this is not authorized.

Background

It started as an advertisement from seemingly reputable websites with reputable names backing it up. The advertisement claims that billionaire Richard Branson and former Senator Manny Villar have engaged and found success in Bitcoin Revolution. Of course, this is not true. Mr. Villar claimed this scam is using his name without his permission in an earlier report.

Bitcoin Revolution Scam Claims

Bitcoin Revolution claims the following:

  • That investors can earn as much as $1,000 per day. That’s 300% per day / 9000% per month for a minimum investment of $250.00
  • That its trading platform software that can make anyone successfully start trading Bitcoins and other cryptocurrencies 85% – 95% of the time.
  • That this system, which is one of their key features, makes for limitless profit potential, making users millionaires in 61 days.
  • That its Bitcoin Revolution Platform eliminates the need to analyze the markets for hours. That the software will do all the work for the investors and the trading robot does the hard work for them.
  • That all investors need to do is sit back and watch their profits grow. The Bitcoin revolution software features automatic trading, like some busted scams do. For those who are not convinced, they even offer a demo account.

As per one of its many websites, users can fund their accounts with prominent debit cards and credit cards. Some, but not all, of its websites have live chat features so that they appear to provide customer service.

Bitcoin Revolution claims to have the following features:

  • Backstaging Feature
  • Live Trading
  • Demo Trading
  • Live Auto Trading

Bitcoin Revolution is Offering Unregistered Securities

SEC said Bitcoin Revolution is offering securities in the form of investment contracts to retail investors. SEC said Bitcoin Revolution investors need not exert effort other than to invest money in order to derive income.

The Securities Regulation Code (SRC) requires all investment sale to the public to first be registered and approved by the Commission.

SEC also reminded the public to be aware of the highly volatile nature of the digital asset market. Because of that, there are many risks and there is no guarantee of profit, like what Bitcoin Revolution is promising.

Lastly, because cryptocurrencies are not backed by any monetary authority, there is no “revert”, unlike when banks go under and the customers can get something from the Philippine Deposit Insurance Commission. That’s why the Philippines, through the Bangko Sentral ng Pilipinas (BSP) came up with virtual exchange licenses.

Bitcoin Revolution is Not Registered as a Corporation or Partnership

SEC confirms Bitcoin Revolution is not registered as a corporation or partnership in the Philippines. It also does not have a secondary license that will allow it to solicit investments from the public.

Bitcoin Revolution is not a Registered Virtual Currency Exchange

SEC said Bitcoin Revolution is also not among the virtual currency exchanges licensed by the BSP. The BSP license allows companies to engage in the selling of virtual assets for fiat and vice versa. Cryptocurrencies trading platform, however, will be covered by an upcoming rule from the SEC regarding Digital Asset Exchanges.

“It must be emphasized that any unauthorized dealings involving digital assets lacks consumer protection because there are not covered by prudential and market conduct requirements applicable to licensed and authorized activities” – SEC Statement

With that, the SEC is advising the public to “not invest” or “stop investing” in any scheme offered by Bitcoin Revolution. It also warns against any other digital asset schemes that promise “ridiculous” rates of return with no risk.

The Commission said anyone acting on behalf of Bitcoin Revolution in selling unregistered securities may be held criminally liable (SRC. Section 28). Also, the names of those involved will be reported to the Bureau of Internal Revenue (BIR) for appropriate penalties and taxes.

Read More: SEC Commissioner Said the Commission is Not Afraid to Enforce Its Rules

This article is published on BitPinas: PH SEC Advisory Against Bitcoin Revolution Scam

SEC Advisory can be found here.

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