Tuloy Ang Modus? SEC Warns Public of New Illegal Crypto Investment Schemes

SEC warns against Coinmate Plus and Trade 13.0 SERAX, unauthorized cryptocurrency schemes promising high returns.

The Philippine SEC has issued advisories against Coinmate Plus Earning Opportunity and Trade 13.0 SERAX, warning the public about their unauthorized and potentially fraudulent investment schemes.

What’s the significance: These schemes are operating without proper registration and may be Ponzi schemes, putting Filipino investors at risk of financial loss.

Coinmate Plus Earning Opportunity 

The Commission revealed that World Eagle Charitable Finance Intl. is promoting an investment opportunity called Coinmate Plus Earning Opportunity, also known as Coinmate Plus or CMP Crypto Trading.

• It claims to offer real-time, accurate market data services for institutions. Accordingly, Coinmate Plus is enticing people to invest as little as ₱1,200 with a promise of daily returns ranging from 3% to 5%. 
• As per a YouTube tutorial on its app, Coinmaate Plus is mainly making transactions through the stablecoin USDT but as seen in the video, there are also other cryptocurrencies such as Bitcoin and DOGE. 
• According to the video, once an investor makes a profit, they must “recharge” first or deposit another 20 USDT to withdraw what they earned. 

Upon further checking, BitPinas found that it is recruiting people through social media platforms, particularly through Facebook. 

• In the posts, Coinmate Plus recruiters are encouraging prospective investors to sign up through a website that is, as of writing, is no longer active active. The signup is required to get the application: 

Additionally, there exists a public group page with 1.6k members; however, the latest activities in the group occurred in March.

Trade 13.0 Serax

The SEC also warned the public about an entity named TRADE 13.0 SERAX, which is soliciting investments in the Philippines without the necessary license or authority from the Commission.

• According to the Commission, TRADE 13.0 SERAX employs fabricated or fake online postings, including statements allegedly from Senator Raffy T. Tulfo and Boy Abunda, to endorse its activities. 

The scheme requires a minimum deposit of $250 or ₱14,000, promising investors the opportunity to earn millions within 3-4 months through auto-trading in cryptocurrencies. 

• The Commission also highlighted that it has received information that TRADE 13.0 SERAX is now operating under the new name “TRADE 24 EVISTA.”
• As per its new website, Trade 24 Evista markets itself as an “advanced trading tool” for retail traders to explore the world of cryptocurrencies. 

Moreover, it appears that false online postings featuring fabricated statements persist, this time involving Australian conservationist Robert Irwin and Hong Kong actor Donny Yen. The format of the posts is similar to that of Tulfo and Abunda, but this time leveraging the online publishing platform Medium.

SEC Reminder

The SEC warned that both Coinmate Plus and Trade 13.0 SERAX are both soliciting investments without proper registration or authorization. 

• In addition, these entities are suspected of operating fraudulent schemes resembling Ponzi schemes, promising high returns with low risk.
• Consequently, the public is advised not to invest or to stop investing in the investment scheme being offered by both entities and their representatives.
• Further, individuals engaged in promoting or facilitating investment schemes offered by the two firms may face criminal liability under Section 11 of the FCPA and Section 28 of the SRC. Penalties include a maximum fine of five million pesos, imprisonment of 21 years, or both. 
• Additionally, their names will be reported to the Bureau of Internal Revenue (BIR) for appropriate taxation and penalties.

Recent Action Against Unauthorized Crypto Firm

The local SEC has been actively addressing the emergence of crypto platforms in the country. 

• Recently, it took action against several online investment platforms, including Binance, XM, and eToro, for operating without proper registration. Binance was specifically banned due to its failure to register in the Philippines, while advisories were issued against XM and eToro for similar illegal activities targeting Filipino investors. 
• Additionally, in collaboration with the National Telecommunications Commission (NTC), the SEC ordered internet service providers to block the websites of OctaFX and MiTrade.

This article is published on BitPinas: Tuloy Ang Modus? SEC Warns Public of New Illegal Crypto Investment Schemes

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SEC warns against Coinmate Plus and Trade 13.0 SERAX, unauthorized cryptocurrency schemes promising high returns.