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- The Securities and Exchange Commission (SEC) warns the public against Platinum Coin, an entity claiming to represent Platinumcoin Pawnshop, and soliciting investments without a license from the commission.
- Platinum Coin is reportedly enticing the public with low investment fees and promising high returns, commissions, passive income, and cash gifts.
- The SEC found out that Platinum Coin operates an unauthorized online lending business, lacks the necessary license to sell securities, and is involved in a Ponzi scheme, a type of fraud that is not a registrable security.
“This is to inform the public that PLATINUM COIN/PLATINUMCOINPAWNSHOP is NOT AUTHORIZED TO SOLICIT INVESTMENTS FROM THE PUBLIC.” –SEC
In a public advisory posted last February 10, citing the reports and information gathered, the Securities and Exchange Commission (SEC) warned the public against engaging with individuals or group of persons claiming to represent Platinum Coin with Department of Trade and Industry (DTI) Certificate of Business name Platinumcoin Pawnshop in favor of a certain Jessieboy Momoy Decenan.
According to the SEC, the entity is enticing the public with investments as low as ₱1,000.00 up to ₱650,000.00 where they can earn 15% up to 50% after 30 days.
Moreover, they also give out commissions; an investor can earn 1 time 5% outright commission and if they apply as an Official Team Leader, the investor can earn a passive income of 2.5% monthly, as well as cash gift worth ₱10,000.00 up to ₱70,000.00 (cold cash) and ₱500 worth of load weekly. Lastly, the investor can also earn a 20% yearly bonus.
“In addition, upon thorough investigation conducted by the Commission. It was found out that PLATINUM COIN/PLATINUMCOINPAWNSHOP is engaged in unauthorized online lending business/activities without a corresponding Certificate of Authority to Operate as a Lending Company from the Commission pursuant to the Lending Company Regulation Act,” the SEC noted.
Accordingly, the SEC noted that the entity offers an investment contract, a form of security, which requires the Platinum Coin to be registered with the Commission and that the concerned entity and/or its agents should have the appropriate registration and/or license to sell such securities to the public.
“Based on the Commission’s database, PLATINUM COIN/PLATINUMCOINPAWNSHOP, is NOT REGISTERED as a corporation or partnership and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC),” the Commission wrote.
In addition, the SEC also emphasized that the scheme being employed by the entity is clearly a Ponzi Scheme—a type of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The SEC stressed that such a scheme is not a registrable security and the Commission will not issue a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme.
Consequently, the SEC advised the public to stop investing in Platinum Coin and to not engage with individuals or groups of persons claiming to represent it.
This article is published on BitPinas: Platinum Coin Unlicensed to Solicit Investments: SEC Cautions Public
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.