April 22, 2020 – The Securities and Exchange Commission has issued an advisory against My Profit Robot (MPR) for engaging in investment-taking activities in the Philippines while it is not authorized to do so.
Based on SEC’s investigation, MPR claims to have a unique trading bot that executes trades automatically at some exchanges using BXTCoins and Property Arbitrage as their trading platforms. MPR also claims to be involved in buying and selling of cryptocurrencies across markets to generate profit from the price differences.
MPR said their robot can give an average daily profit of 1% per day (365% per annum). One must purchase the MPR (the bot) for US$200 (or its equivalent in Php). The license for MPR is for 6 months. After the purchase, one must deposit Bitcoin to their BXT wallet, and then they will proceed trading on behalf of the investor.
Based on that calculation, an initial investment of Php 5,000 will generate Php 1,739 daily profit and Php 20,022 in 6 months.
SEC said MPR is claiming it is the “most trusted and reliable robot” for automating arbitrage trading because its software can execute trades faster.
MPR also has a referral program wherein investors can receive 35% of the sale if they entice others to buy the software as well.
SEC said these schemes of MPR involve the offer and sale of securities in the form in the form of investment contracts to the public. This is because they entice the public to invest in BXTCoins and Property Arbitrage.
SEC also said that whether BXTCoins can be treated as cryptocurrencies or not, the fact remains that they follow the nature of “securities”, which by law, requires anyone and any company offering it to register with the SEC for a license to offer them to the public. MPR is not registered as a corporation nor does it have a secondary license to take investments from the public.
My Profit Robot is also not one of the virtual currency exchanges licensed by the Bangko Sentral ng Pilipinas (BSP) to operate in the Philippines.
“The public must be wary that any promise of ridiculous rates of return with little or no risks is an indication of a Ponzi Scheme, where money from new investors is used to pay “fake profits” to earlier investors. Also, any promise that defies the normal financial logic is surely unreliable and sketchy.” -SEC Press Release
SEC warned that aside from the penalties imposed by violating the Securities Regulation Code (SRC), the recently passed Bayanihan to Heal as One Act punished those participating in cyber incidents that make use or take advantage of the current crisis situation to prey on the public through scams, phishing, fraudulent emails, or other similar acts.
SEC said the names of those involved will be reported to the Bureau of Internal Revenue (BIR).
Read the SEC Advisory here.
This article is published on BitPinas: PH SEC Advisory on My Profit Robot (MPR) for Unauthorized Investment Taking Activities