Philippines SEC Issues Warnings on Paysbook / Indigen Coins, PurePound, Etc
Purewealth allegedly announces that Purepound Coin is the 2nd largest cryptocurrency in terms of global capitalization behind bitcoin and above ethereum.
The Philippine Securities and Exchange Commission (SEC) issues multiple advisories to the public against Paysbook / Indigen Coins, Purewealth / PurePound Coin, Crypto Expert Inc, and Yeheey Itraffic System Inc. All entities are either selling unregistered security tokens or enticing the public to invest without securing a registration from the agency.
SEC Advisory on Paysbook E-Commerce System and Indigen Coins
The regulator has acquired information that Paysbook E-Commerce System Co. Ltd., founded by Arjay Gallenero is offering online investments and enticing users to invest in a cryptocurrency called Indigen Coins.
Data gathered by the commission report that Paysbook operates a website where the primary model is that members will earn money by logging in and out while also recruiting other individuals into the scheme.
At the same time, members are set to earn Indigen Coins every time they like, share, post, or comment on the Paysbook social media account. Up to 0.050 Indigen Coin can be earned by the individual in this scheme.
Individuals are also set to earn commissions through the following:
- Direct Commission – earn Php 100 for every person recruited
- Matching Commission – earn Php 100 for every pair recruited
- Leveling Commission – earn Php 400 for every layer of the recruitment pyramid filled.
SEC Advisory on Purewealth EBC Corporation and PurePound Cryptocurrency
Note: A number of websites suggest there is “Purepound” Coin and a “Pure Pound” Coin. We follow the SEC’s version “Purepound” in writing this article.
While Purewealth tells the public it is a SEC-registered corporation, the commission clarified that the company is registered as a corporation with the purpose of engaging in wholesale activities.
Because of that, Purewealth is not authorized to offer and sell PurePound Coin, which is advertised as an investment vehicle.
According to data gathered by the SEC, PurePound is bought and sold at cryptotrade-asia.com and can also be purchased through a “cryptocard” from PurePound’s website. PurePound holders are encouraged to hold, trade, or invest the coin. They can also engage in “passive mining” by uploading official receipts.
Purewealth made a number of erroneous claims to the public, including allegedly announcing that PurePound Coin has become the second largest cryptocurrency in terms of global capitalization behind bitcoin and above ethereum.
Purewealth also claimed that it has submitted its whitepaper and registration with the commission, which the SEC denied to have received.
Purewealth held numerous gatherings, notably in Bacolod and Kalibo, Aklan. It’s scheduled to host more promotional events in Dumaguete, Romblon, Baguio, General Santos, and Butuan. There are scheduled Initial Coin Offerings (ICOs) in Cebu, Iloilo, with an advertised National ICO at the Manila Hotel on November 24, 2018.
Purewealth also claimed that PurePound has increased in value from Php 179.74 in April 2018 to Php 35,200.05 in July 2018.
SEC: PurePound and Indigen Coins Are Not Registered
Both Purewealth’s PurePound and Paysbook’s Indigen Coins are considered as investment contracts, defined as contracts, transactions, or schemes where a person is encouraged to invest his money in a common enterprise and is led to expect profits primarily from the efforts of others.
SEC: PurePound is an Unregistered Security Token
SEC classifies PurePound as a security token. As such, the law requires such activities to be duly registered and appropriate licenses must be acquired first before selling these securities to the public.
Anyone who acts as salesmen, dealers, brokers, or agents of these companies in selling or convincing people to invest may be prosecuted or held criminally liable under the Securities Regulation Code and will be penalized with a maximum fine of Php 5 million or a penalty of 21 years of imprisonment.
Advisory Crypto Expert Inc and Yeheey Itraffic System
Warning on Crypto Expert Inc
According to data gathered by the commission, Crypto Expert Inc is a company that promises “unreasonably” high returns (25% return on investment guaranteed every week). The company claimed that it is using the money to fund its crypto trading activities. When profits are earned, payouts are distributed. Non-monetary rewards such as laptops and smartphones are given to incentivize investors.
Contrary to what Crypto Expert Inc has claimed, it is not registered as a corporation or partnership with the commission. It is also not registered to solicit investments to the public.
Warning on Yeheey Itraffic System
Yeheey runs an investment scheme where users earn money through the following:
- sign up bonuses
- log-in and log-out bonus
- donate and win promise
- survey forms
- unli clicking programs
- sponsoring bonus – every recruited member earns the recruiter some reward
- infinity cycle bonus – every match pair nets the recruiter a borus
- global profit shares – every Php 50,000.00 earnings of a member is equivalent to one share.
SEC Warning on Investment Scams
All cases above, Purewealths’ PurePound Cryptocoin, Paysbook’s Indigen Coins, Crypto Expert Inc, and Yeheey are unregistered. All the companies are not authorized to solicit investments to the public.
The Commission reiterates its warning on how to spot potential investment scams.
- Unrealistic High Returns on Investments
- Underlying activity is not explained well
- Promoters discourage the investor from cashing out his investment
- Promoters encourage investors to roll over their profits or infuse more money.
The public is hereby advised by the Securities and Exchange Commission to not invest in such schemes.
The commission has issued an earlier advisory on Ploutos Coin and the company behind it – Freedom Traders. The company run a similar scheme to the companies described earlier in this article
Source: SEC
